Trump Threatens Economic Retaliation Against BRICS Nations Considering Dollar Ditch
Former President Donald Trump has issued a stark warning to the BRICS group of nations, threatening sweeping economic sanctions if they move forward with plans to reduce their reliance on the US dollar in international trade.
In a fiery statement posted on his Truth Social platform, Trump expressed his vehement opposition to any attempt by BRICS members to distance themselves from the dollar.
“The idea that the BRICS countries are trying to walk away from the dollar while we stand by and watch,” Trump wrote on Saturday.
He went on to declare that he would pressure BRICS nations to commit to excluding the creation of a common currency or supporting any alternative currency to replace the US dollar, threatening to impose a 100% tariff on their goods should they refuse.
“They get another ‘fool’!” Trump continued, in a quote reported by Reuters on Sunday.
“There is no chance that BRICS will replace the US dollar in international trade, and any country that tries to say goodbye to America,” Trump stated.
Trump’s pronouncements come amid growing discussions within BRICS about shifting away from dependence on the dollar.
The Bloc, comprising Brazil, Russia, India, China and South Africa, and recently expanded to include Egypt, Iran, Ethiopia and the United Arab Emirates, has seen increased interest from numerous other countries eager to join.
The idea of a BRICS-backed currency was first floated by Russia in 2022. Brazilian President Luiz Inacio Lula da Silva echoed this sentiment last year, arguing that trading in alternative reserve currencies could shield BRICS nations from fluctuations in the dollar’s value.
The potential ramifications of such a shift are significant for the US economy. A diminished role for the dollar in global trade could weaken America’s financial influence and potentially lead to higher borrowing costs.
Trump’s threat raises concerns about a possible trade war and underscores the increasing geopolitical tensions surrounding the global currency landscape.
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Photo/Jamie Kelter Davis/The New York Times
2024-11-30 22:44:00
#Donald #Trump #threatens #BRICS #leaves #dollar
## Trump’s Dollar Ultimatum: Can He Stop BRICS from Ditching the Greenback?
Former President Donald Trump has issued a stark warning to the BRICS group of nations, threatening sweeping economic sanctions if they move forward with plans to reduce their reliance on the US dollar in international trade. This comes at a time when the bloc, comprising Brazil, Russia, India, china, South Africa, and recently expanded to include Egypt, Iran, Ethiopia, and the United Arab Emirates, has been increasingly discussing shifting away from dollar dependence.
To unpack the implications of Trump’s threat and analyze the potential ramifications for the global economy, we’ve assembled a panel of experts: Dr. Evelyn Cheng, Professor of international Economics at Columbia University, and John Davis, Former Assistant Secretary for International Finance at the United States Treasury Department.
### BRICS’ Déjà Vu: Shifting Away from the Dollar
**World Today News:** Dr. Cheng, Trump’s statement echoes a longstanding desire within certain circles in BRICS nations to reduce their reliance on the dollar. Can you elaborate on the ancient context of this movement?
**Dr. Cheng:** This isn’t a novel idea. There have been discussions for years about creating a BRICS-backed currency or alternative reserve currency, especially following US sanctions against Russia. Countries like China have expressed a desire to internationalize the yuan, reducing their vulnerability to US financial power.
**World Today News:** Mr. Davis, could you shed light on the motivations behind BRICS’ ambition to move away from the dollar?
**Mr. Davis:** Several factors are driving this move. first, there’s a desire for more autonomy in the international financial system. Second, concerns over the weaponization of the dollar through sanctions have intensified, notably considering recent geopolitical tensions. some BRICS members seek to increase their global influence by establishing a parallel financial system.
### Trump’s tariff Tightrope: Threat vs. Reality
**World Today News:** Mr. Davis, Trump’s threat of a 100% tariff on BRICS goods seems drastic. How realistic is such a move, and what could be its consequences?
**Mr. Davis:** While Trump is known for his confrontational rhetoric, implementing a 100% tariff would be incredibly damaging to the US economy. It would likely trigger retaliatory measures, disrupting global trade and supply chains. It’s more likely a negotiating tactic aimed at deterring BRICS from moving forward with their plans.
**World Today News:** Dr. Cheng, how would American consumers and businesses possibly be impacted by such a trade war?
**Dr. Cheng:** A trade war with BRICS would considerably increase the cost ofImporting goods from these countries, leading to higher prices for US consumers and businesses. It would also disrupt supply chains and potentially lead to job losses in sectors reliant on imports from BRICS nations.
### A Shifting Global Landscape: The Future of the Dollar
**World Today News:** Dr. Cheng, what are the long-term implications for the US dollar if BRICS succeeds in establishing an alternative currency system?
**Dr. Cheng:** A triumphant BRICS currency could challenge the dollar’s dominance but it’s unlikely to replace it entirely in the near future. The US dollar’s deep liquidity, established financial infrastructure, and global trust make it challenging to dethrone. However,a significant shift in global reserves towards BRICS currencies could weaken the dollar’s influence and potentially lead to higher borrowing costs for the US government.
**World Today News:** Mr. Davis, where do you see the global currency landscape headed in the next decade?
**Mr. Davis:** The rise of alternative currencies and a multipolar financial system is becoming increasingly likely. The dollar will likely remain important, but its dominance will be challenged. We may see the emergence of a basket of reserve currencies, with increased use of digital currencies also playing a role.
### What Lies Ahead?
The future of global trade and finance hangs in the balance as BRICS members weigh their options. While Trump’s threats may serve as a deterrent, the momentum towards creating a new financial order is gaining traction. Only time will tell what impact this will have on the US dollar and the global economy.
**What are your thoughts on Trump’s ultimatum? share your insights in the comments below and explore related articles on the future of the dollar and the rise of BRICS in our Finance section.**
