Donald Trump Threatens 100% Tariff if BRICS Ditches the US Dollar

President Donald Trump has threatened BRICS countries with 100% tariffs if they proceed to extremity reliance connected the dollar. Trump stressed that goods entering the US volition look a 100% tariff and the measure volition beryllium footed by BRICS. This comes aft helium announced the constitution of the External Revenue Service (ERS) which volition cod tariffs and taxes from overseas countries.

Also Read: Trump Directs Agencies for Emergency Steps To Reduce Cost of Living

BRICS present needs to rethink their de-dollarization initiatives arsenic Trump is coming astatine them harder. Imposing tariffs connected goods entering the US volition make a fiscal imbalance successful the imports and exports sector. Businesses could instrumentality losses and find it hard to prolong successful a competitory planetary market.

“As a BRICS nation, they’ll person a 100% tariff if they truthful overmuch arsenic adjacent deliberation astir doing what they thought (de-dollarization), and truthful they’ll springiness it up immediately,” said Trump to ANI.

Also Read: BRICS Realize They Cannot Challenge the US Dollar

Trump Challenges BRICS connected De-Dollarization

Source: Reuters / Kevin Lamarque / Pool

Trump is not taking the BRICS thought of de-dollarization lightly and is stepping up with the threats. The confederation could astir apt chill down connected ending dependency connected the US dollar nether his term. Emerging economies tried to outdo the US dollar by trading successful section currencies for cross-border transactions.

Also Read: BRICS: 2 Countries Ready to Ditch SWIFT and Launch New Payment System

However, things mightiness soon instrumentality a U-turn arsenic a 100% tariff connected goods could origin superior harm to their economies. Also, Trump has vowed to support the US dollar from BRICS and bring the de-dollarization docket to a halt. The adjacent 4 years could acquisition aggravated commercialized wars wherever some the US and processing countries volition effort to propulsion their agenda.

Nonetheless, without the enactment of the US dollar, BRICS mightiness find it tougher to run and prolong successful the planetary markets. Trump could leverage the accidental and enactment an extremity to the de-dollarization initiative. His tenure could redo respective policies and bring processing countries successful line.