Mon Dec 02 03:27:21 UTC 2024: ## Trump Threatens BRICS Nations with 100% Tariffs Over Potential Dollar Alternative

**New Delhi, [Date]** – President-elect Donald Trump issued a stark warning to the BRICS nations (Brazil, Russia, India, China, and South Africa) on Sunday, threatening to impose 100% tariffs if they pursue the creation of a new currency or support any alternative to the US dollar as the global reserve currency.

Trump’s statement, made via social media, comes amidst ongoing discussions at the BRICS summit regarding the dominance of the dollar in international trade. While Russian President Vladimir Putin criticized the dollar’s use as a “weapon,” Indian Prime Minister Narendra Modi cautioned against the BRICS group appearing to challenge established global financial institutions.

Trump’s threat is viewed by some as a response to growing efforts by several nations to explore alternative payment mechanisms, particularly following US sanctions on Russia and Iran which restricted their access to the SWIFT international payment system. Experts argue that these US actions have inadvertently pushed countries towards seeking alternatives to the dollar’s dominance.

Trade analysts warn that Trump’s proposed tariffs would ultimately harm the US economy, potentially shifting imports to other countries and increasing costs for American consumers. They argue that the US has become less competitive in manufacturing and tariffs are unlikely to reverse this trend.

India, a key BRICS member, has been exploring ways to reduce its reliance on the dollar, including allowing invoicing and payments in rupees for international trade. However, India’s External Affairs Minister S Jaishankar clarified that this is not a move to abandon the dollar but rather a strategy to navigate US sanctions and promote multipolarity in global finance.

The International Monetary Fund (IMF) has noted a gradual decline in the dollar’s share of global foreign exchange reserves, partially offset by the rise of non-traditional currencies like the Chinese renminbi. However, the IMF also observed a recent slowdown in the renminbi’s internationalization.

While China is reportedly keen to leverage the BRICS bloc to counter US influence, other BRICS members like India and Brazil favor a more collaborative approach with the US. The effectiveness of Trump’s threat remains uncertain, with experts suggesting that diplomatic engagement and the continued development of alternative financial platforms may be more impactful than punitive tariffs.

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