Trump’s Warning to Brics Nations
Trump criticized Brics nations, including China and Russia, for efforts to reduce the dollar’s dominance in global trade. “The idea that they move away from the dollar while we watch is OVER,” he posted on Truth Social.
The Brics bloc—Brazil, Russia, India, China, and South Africa—recently added Iran, Egypt, Ethiopia, and the UAE. Some members proposed creating a Brics currency, but internal disagreements have stalled progress.
Trump warned he would impose 100% tariffs if they pursue a Brics currency or support alternatives to the US dollar. “They can go find another sucker,” he added.
Negotiation Tactics or Firm Policy?
Some allies suggest Trump’s threats are part of his negotiation strategy. Republican Senator Ted Cruz emphasized “the importance of leverage” and pointed to previous tariff threats prompting action.
Trump’s Treasury Secretary pick, Scott Bessent, said Trump’s approach is to “escalate to de-escalate.” He predicted Trump ultimately supports free trade.
Recent examples include Canadian Prime Minister Justin Trudeau visiting Trump to avoid a proposed 25% tariff on Canadian goods.
How Tariffs Work
Tariffs are taxes on imported goods, charged to domestic firms importing them. A 100% tariff doubles the cost of affected imports. Trump argues tariffs protect jobs, grow the economy, and generate tax revenue.
Economists largely disagree, noting tariffs raise costs for US consumers and businesses. Many tariffs from Trump’s first term remain in place under President Biden, with studies showing most costs were borne domestically.
US President-elect Donald Trump has warned of 100% tariffs on nine nations considering a rival currency to the US dollar.
Trump’s Warning to Brics Nations
Trump criticized Brics nations, including China and Russia, for efforts to reduce the dollar’s dominance in global trade. “The idea that they move away from the dollar while we watch is OVER,” he posted on Truth Social.
The Brics bloc—Brazil, Russia, India, China, and South Africa—recently added Iran, Egypt, Ethiopia, and the UAE. Some members proposed creating a Brics currency, but internal disagreements have stalled progress.
Trump warned he would impose 100% tariffs if they pursue a Brics currency or support alternatives to the US dollar. “They can go find another sucker,” he added.
Negotiation Tactics or Firm Policy?
Some allies suggest Trump’s threats are part of his negotiation strategy. Republican Senator Ted Cruz emphasized “the importance of leverage” and pointed to previous tariff threats prompting action.
Trump’s Treasury Secretary pick, Scott Bessent, said Trump’s approach is to “escalate to de-escalate.” He predicted Trump ultimately supports free trade.
Recent examples include Canadian Prime Minister Justin Trudeau visiting Trump to avoid a proposed 25% tariff on Canadian goods.
How Tariffs Work
Tariffs are taxes on imported goods, charged to domestic firms importing them. A 100% tariff doubles the cost of affected imports. Trump argues tariffs protect jobs, grow the economy, and generate tax revenue.
Economists largely disagree, noting tariffs raise costs for US consumers and businesses. Many tariffs from Trump’s first term remain in place under President Biden, with studies showing most costs were borne domestically.