Islamabad, Dec 1: US President-elect Donald Trump has announced plans to impose a 100% tariff on BRICS nations if they continue efforts to move away from trading in the US dollar. Trump’s statement, made on his platform Truth Social, emphasized that creating a new BRICS currency or alternative to the dollar would lead to “significant economic consequences.”
In his post, Trump warned that nations attempting to bypass the dollar would lose access to the US economy, underscoring the dollar’s role as irreplaceable in global trade. This comes as BRICS—comprising Brazil, Russia, India, China, and South Africa—expands to include nations like Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. The bloc has been actively exploring “de-dollarization” in its transactions.
Impact on Trade and Global Relations
Trump’s rhetoric highlights the US’s strong trade relationships with BRICS members, with U.S.-China trade reaching $758.4 billion and U.S.-India trade at $191.8 billion in 2022. Pakistan, which applied for BRICS membership in 2023, may also face implications if Trump’s proposed tariffs are enacted.
This marks Trump’s second tariff-related threat in a week, signaling a hardline approach to defending the dollar’s dominance in international trade.
