Trump Threatens 100% Tariff on BRICS Nations Over Currency Move
Washington – In a move that could send shockwaves through the global economy, U.S. President Donald Trump has threatened to impose a steep 100% tariff on goods from BRICS nations if they proceed with plans to challenge the dominance of the U.S. dollar.
This unprecedented warning came after the BRICS grouping – Brazil, Russia, India, China and South Africa – explored the creation of a new currency and increased trade in non-dollar currencies at a summit last month in Russia. The move was seen by BRICS members as a way to strengthen their businesses and mitigate reliance on the US dollar, which has long held the mantle of the world’s dominant reserve currency.
The proposed BRICS Pay system, modeled after globally recognized payment networks like SWIFT, aims to facilitate trade among member states while reducing their dependence on the U.S. financial system.
"They should not create a new currency. Also do not support any currency other than the US dollar. If they do, they should be prepared to pay 100 percent tax. Then they won’t be able to sell goods in the US economy," Trump stated emphatically.
Trump’s strong stance highlights a growing tension between the U.S. and emerging economies over the future of global finance. While the dollar remains deeply entrenched in the world’s financial system, the rise of alternative currencies and decoupling strategies by countries like Russia and China signal a shifting global landscape.
The impact of the US Of the proposed 100% tariff is not just undecided remain to be seen
The implementation of such a steep tariff would have dramatic repercussions for both the U.S. and the BRICS nations. It could lead to increased prices for consumers, hinder global trade, and destabilize the global economy.
The ramifications of this move, if implemented, would be felt worldwide. The
Peace talks
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2024-12-01 04:21:00
## Trump’s 100% tariff Threat: A BRICS Breakdown
**Could President Trump’s unprecedented move against the BRICS nations ignite a global trade war? What are the potential economic ramifications for both sides?**
In a dramatic escalation of global tensions, President Donald Trump has threatened to impose a crippling 100% tariff on goods from BRICS nations – Brazil, Russia, India, China, and South Africa – if they go ahead with their plans to challenge the US dollar’s dominance. This bold move comes in response to recent discussions within the BRICS bloc about creating a new currency and increasing trade using non-dollar currencies. Today, world-today-news.com sits down with two leading experts to unpack the implications of this potential trade war.
**Joining us are Dr.Anya Ivanova, Professor of International Economics at columbia University and a specialist in global trade relations, and Mr. Ravi Kapoor, a Senior Fellow at the Brookings Institution focusing on emerging market economies.**
### The Dollar Under Siege: A Paradigm Shift?
**World-Today-News:** Dr. Ivanova,President Trump’s threat is seen by many as a direct challenge to the established world order. Could this be the beginning of the end for the US dollar’s reign as the world’s reserve currency?
**Dr. Anya Ivanova:** It’s certainly a significant development. While the US dollar remains the dominant global currency,the BRICS nations collectively represent a powerful economic force. Their move towards a new currency and reduced reliance on the dollar reflects a growing desire to diversify their economies and reduce vulnerability to US monetary policy.
**World-Today-news:** Mr. Kapoor, what are the driving forces behind the BRICS push for alternative financial systems?
**Mr. Ravi Kapoor:** There are several factors at play. Countries like Russia and China have long sought to reduce their reliance on the US dollar, which can be weaponized through sanctions. the recent US-China trade war has further intensified these efforts. Memebership in BRICS offers a platform to explore these alternatives collectively.
### A Global Trade War: Winners and Losers?
**World-Today-News:** The prospect of a 100% tariff is alarming. Dr. Ivanova, what would be the immediate economic consequences for both the US and BRICS nations?
**Dr.Anya Ivanova:** The impact would be devastating. Such a tariff would likely trigger a global trade war,with reverberations throughout the world economy. US consumers would face substantially higher prices for goods imported from BRICS countries, while BRICS nations would see a sharp decline in exports to the US market.
**World-Today-news:** But isn’t this move ultimately counterproductive for the US economy, Mr.Kapoor?
**Mr. Ravi Kapoor:** Absolutely. Dependence on the dollar is a double-edged sword. while it affords the US some leverage, it also makes the US economy vulnerable to global economic fluctuations. A trade war with major economies like China and India would ultimately hurt American businesses and consumers.
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### De-Dollarization: A Fait Accompli?
**World-Today-news:** Dr. Ivanova, do you believe the dollar’s dominance is truly under threat?
**Dr.Anya Ivanova:** The global landscape is evolving. While I don’t foresee the complete overthrow of the dollar system in the immediate future, its dominance is undoubtedly being challenged. The rise of other major currencies, coupled with initiatives like the BRICS Pay system, suggests a future with a more multipolar financial system.
**World-Today-News:** What advice would you give to policymakers and investors navigating this complex economic terrain, Mr. Kapoor?
**Mr.Ravi Kapoor:** Diversification is key. Both countries and businesses need to reduce their reliance on any single currency or market. This involves exploring new trade partnerships,investing in local production,and hedging against currency risks. **
### What’s Next?
The clash between the US and the BRICS nations over the fate of the global financial system is a story that is still unfolding. Will President Trump’s threat ultimately lead to a devastating trade war, or will it spark negotiations towards a more balanced and inclusive global economic order? The coming months will be crucial in shaping the future of global finance.
**What are your thoughts on this developing situation? Join the conversation in the comments below.
For further analysis, check out our related articles on the rise of the Chinese Yuan and the implications of the BRICS Pay system.**
