BRICS has reacted to the Trump presidency signaling that his re-entry to the White House will not hinder its growth. The alliance will continue pushing the de-dollarization agenda and has no plans of walking back on its framework. The member countries aim to strengthen their cooperation and global economic initiatives despite who occupies the White House.
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Jose Juan Sanches, President of the Brazilian analytical agency CMA Group said that BRICS will not change its perspectives after Trump takes oath in January next year.
“We can approach this issue from two perspectives: economics and politics. From an economic standpoint, the development of which depends solely on the global market situation, there will be no issues,” said Sanches, to a question about the future of BRICS under Trump’s presidency.
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Trump Could Hinder BRICS De-Dollarization Ambitions
President-elect Trump recently vowed to increase tariffs by 100% if BRICS tried to end reliance on the US dollar. “If a country tells me, Sir we like you very much but we’re no longer adhering to the US dollar being an individual reserve currency not use it anymore, I’ll say that’s okay. You will pay a 100% tariff on everything you sell in the US. We love your product, I hope you sell a lot of it into the US but you’ll have to pay 100% tax,” he said.
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Trump explained that BRICS will fall in line if a 100% tariff is put on their products entering the US. “Sir, it would be an honor to stay with the reserve currency. You don’t have other people that can talk that way,” he said. A 100% tariff will force BRICS to abandon the de-dollarization initiative as their import and export sector will be hit. Doing business with a 100% tariff will prove costly and only lead to losses in their balance sheets.