Chicago – November 30, 2024
President-elect Donald Trump has warned that he could impose 100% tariffs on nine countries if they attempt to weaken the U.S. dollar. This warning was aimed at the nations in the BRICS group—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. Turkey, Azerbaijan, and Malaysia have also applied to join, with other countries showing interest.
Trump’s threat comes as these countries and others have expressed frustration with America’s control over the global financial system. The U.S. dollar remains the dominant currency in global trade, making up about 58% of the world’s foreign exchange reserves.
Many international transactions, including oil, are still priced in dollars. However, the BRICS countries are working to reduce reliance on the dollar by exploring non-dollar trading options, a process known as de-dollarization.
In a post on Truth Social, Trump stated that these countries must pledge not to create a new BRICS currency or back any currency that could replace the U.S. dollar. If they do, he warned, they would face severe tariffs and lose access to the U.S. market.
