Sun Dec 01 12:51:40 UTC 2024: **Trump Threatens 100% Tariffs on BRICS Nations Over De-Dollarization Efforts**

**Washington, D.C.** – President-elect Donald Trump issued a stark warning to the BRICS nations (Brazil, Russia, India, China, and South Africa) on Saturday, threatening to impose 100% tariffs on their goods if they pursue efforts to create a new currency or undermine the U.S. dollar’s dominance.

In a post on his Truth Social platform, Trump declared that the idea of BRICS nations moving away from the dollar is “OVER,” reiterating his campaign pledge to make de-dollarization costly. He emphasized that any attempt to create a new BRICS currency or support an alternative to the U.S. dollar would be met with crippling tariffs and exclusion from the American market.

This threat comes as Trump prepares to assume office in January and follows discussions within his economic advisory team about punishing countries that engage in bilateral trade using currencies other than the dollar. Potential penalties under consideration include export controls, currency manipulation charges, and additional trade levies.

Trump’s stance reflects his long-held belief in maintaining the U.S. dollar’s global reserve currency status. Experts, however, have expressed concerns. Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, argued that Trump’s approach is misguided, stating that the U.S. cannot simultaneously reduce its trade deficit and increase the dollar’s global dominance.

The BRICS nations have previously discussed de-dollarization, particularly gaining momentum after the U.S.-led sanctions against Russia in 2022. While alternatives like the Chinese yuan are gaining traction, the established infrastructure supporting the dollar, including cross-border payment systems, is expected to maintain its dominance for the foreseeable future.

Trump’s latest threat adds to his already aggressive pre-inauguration trade policy pronouncements. He has previously threatened additional tariffs on goods from China and Mexico/Canada to curb illegal immigration and drug trafficking. These actions have already prompted reactions, including a meeting between Canadian Prime Minister Justin Trudeau and Trump to address escalating tensions, and speculation by JPMorgan Chase & Co. about potential Chinese yuan depreciation in response to a potential trade war. The incoming administration’s actions are expected to significantly impact global markets.

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