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President-elect Donald Trump has made it clear that any efforts by the BRICS nations to undermine the US dollar could lead to severe economic consequences, including a 100 percent tariff on their goods. His remarks indicate a more aggressive foreign policy aimed at safeguarding the dollar’s dominance in global markets.
“We require a commitment… that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100 percent Tariffs,” Trump wrote on his Truth Social website, referring to the grouping that includes Brazil, Russia, India, China, South Africa and others.
This warning follows last month’s BRICS summit in Kazan, Russia, where member nations explored ways to reduce their reliance on the US dollar. Discussions focused on strengthening local currencies and promoting non-dollar transactions as a way to lessen their dependence on the US financial system.
The BRICS group, originally established in 2009, has seen substantial expansion over the years, now including countries such as Iran, Egypt, and the United Arab Emirates. Together, these nations account for a notable share of global economic activity, though they still represent a minority compared to the world’s total economic output.
Moscow emerged victorious at the October Kazan summit, securing a joint declaration that calls for the expansion of correspondent banking networks within BRICS nations.
This move also emphasizes the importance of facilitating settlements in local currencies, aligning with the broader vision of the BRICS Cross-Border Payments Initiative to establish a more diversified and resilient financial infrastructure.
While other aspects of the summit gained traction, Putin conceded that, by its conclusion, very little progress had been made on launching a potential competitor to SWIFT, the Belgium-based financial messaging system. The idea of creating an alternative financial network remained a distant goal, with little movement in its development.
“As for SWIFT and any alternatives, we have not created and are not creating any alternatives,” Putin told reporters at the end of the summit.
He added: “As for a unified BRICS currency, we are not considering that question at the moment.”
Trump has vowed to pursue a protectionist agenda, threatening hefty tariffs on neighbors and rivals.
If BRICS countries continue with their plans, Trump warned, they “should expect to say goodbye to selling into the wonderful US Economy,” he wrote.
“They can go find another ‘sucker!’ There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America.”