The BRICS alliance might not take Trump’s threats lightly and could impose countermeasures for his 100% tariff remark. China, Russia, and Iran could move forward, challenging Trump, while other member nations could play it softly.
Trump recently threatened BRICS to abandon the de-dollarization agenda or face consequences of 100% tariffs on goods entering the US. The threat was made even before he took oath indicating that the trade war would intensify under his presidency. Trump wants the US dollar to remain supreme and be the dominant currency of the world.
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BRICS Will Respond With Countermeasures on Trump’s 100% Tariff
The BRICS bloc could countermeasure Trump’s 100% tariff and place the heat on the US, said Shakila Yacob, Professor at Jeffrey Cheah Institute. The move could ignite a fresh trade war as Trump could also step up his aggression and impose more duties. “Of course, this will simply result in other countries responding with their countermeasures. If Trump indeed imposes 100% duties it will lead to countermeasures,” she said.
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Yacob urged Southeast Asian countries to side with BRICS as Trump could turn reckless through duties and tariffs. She explained that the developments could affect the global economy leading to higher prices for commodities. “We are concerned about the influence that it will have on the global economy, which is why it is important for Southeast Asia to join BRICS,” she said.
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Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The move could have lasting consequences on the US economy if the White House fails to import the dollar. Local currencies could strengthen in the currency markets and take the lead in the forex sector. How Trump will manage BRICS and outperform the bloc will determine the future of the US economy and the dollar.