Mon Dec 02 00:57:12 UTC 2024: ## Trump Threatens 100% Tariffs on BRICS Nations Over Potential New Currency

**Washington D.C.** – President-elect Donald Trump issued a stark warning on Saturday, threatening to impose 100% tariffs on BRICS nations if they develop a new currency to challenge the US dollar. In a post on Truth Social, Trump declared that any attempt to replace the dollar would result in these countries being barred from American markets.

“We require a commitment from these countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy,” Trump wrote.

This threat comes after Trump previously threatened increased tariffs on imports from China, Mexico, and Canada. The move is considered premature, particularly given Indian External Affairs Minister S. Jaishankar’s previous dismissal of a common BRICS currency. “There is no idea of a BRICS currency. Currencies will remain a national issue for a long time to come,” Jaishankar stated last year.

While Brazilian President Lula da Silva suggested a common currency at the recent BRICS summit in Johannesburg, the proposal gained no traction. The diverse economic structures and developmental stages within the expanded BRICS group—which now includes Iran, Egypt, Ethiopia, and the UAE—make the creation of a unified currency extremely challenging. Dominance by China’s Yuan is another significant obstacle.

The current reliance on the US dollar in international trade remains substantial, although its share of global foreign reserves has been gradually declining, according to the International Monetary Fund. This decline is attributed to a diversification of reserves into currencies such as the Yuan, and those of South Korea, Singapore, Canada, and Australia. However, the dollar still holds approximately 60% of global reserves.

Trump’s warning is viewed by some as a loyalty test and a preemptive measure against China, a major player within the BRICS group. The increasing use of non-dollar currencies in bilateral trade, fueled partly by US sanctions, highlights the complexities of the global financial landscape.

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