Former US President Donald Trump has warned of serious economic consequences if BRICS and other countries sideline the US dollar. The presidential candidate pledged not to make trade deals easy for developing nations if they move away from the USD. The warning from Trump comes when the BRICS alliance is looking to make local currencies the sole option for cross-border transactions.
Also Read: BRICS: China Exporters Stockpile $500 Billion, Chinese Yuan Could Rise
Read here to know how many sectors in the US will be impacted if BRICS ditches the dollar for trade. The move could lead to hyperinflation in the homeland and Donald Trump wants to avoid the economic dangers. The former President has now put the alliance in a spot
Also Read: 2 BRICS Countries Advancing Towards Launching New Currency
BRICS: 100% Trade Tariff Will Be Imposed If They Ditch the US Dollar, Warns Donald Trump
Donald Trump warned without directly naming BRICS that countries who look to end reliance on the US dollar will face a 100% tariff on goods that enter the US. “You leave the US dollar and you’re not doing business with the United States because we are going to put a 100 percent tariff on your goods,” he said during a rally in Wisconsin.
Also Read: BRICS: Russia’s Economy Grows Despite US Sanctions & Declining Imports
If the tariffs are imposed, it could change the global trade dynamics leading to a paradigm shift in the import and export sector. BRICS nations could face serious challenges as a 100% tariff could be a financial burden they cannot handle. Donald Trump is known to make bold decisions and BRICS could vary his statements on the US dollar.
The attempts at de-dollarization were first kick-started by BRICS after the US pressed sanctions on Russia in February 2022. The alliance fast-tracked the agenda since then convincing other developing countries to follow suit. However, Donald Trump is aiming to undo the damage caused by BRICS and reclaim the US dollar’s supremacy if elected.