Trump Threatens BRICS Nations with 100% Tariff

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Facts

  • US Pres.-elect Donald Trump on Saturday threatened to impose 100% tariffs on imports from BRICS nations if they attempt to 'create a new BRICS Currency' or support any replacement of the dollar in international trade.[1]
  • In a post on Truth Social, Trump wrote: 'They can go find another 'sucker!' There is no chance that the BRICS will replace the U.S. Dollar in International Trade,' adding that, 'any Country that tries should wave goodbye to America.'[2]
  • BRICS currently consists of nine member nations: Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE. Thirty-four others have expressed interest in joining the economic bloc.[3]
  • Last year, Brazilian Pres. Luiz Inacio Lula da Silva proposed creating a common BRICS currency to reduce reliance on the US dollar, similar to the EU's euro system.[4][5]
  • In October, Russian Pres. Vladimir Putin said BRICS isn't currently considering a common currency, but is exploring a wider use of national currencies and enhanced coordination between central banks.[3]
  • The US maintains substantial trade relationships with BRICS countries, including approximately $758B in goods and services trade with China and $192B with India in 2022.[6]

Sources: [1]Breitbart, [2]Truth Social, [3]CNN, [4]New York Post, [5]Politico and [6]NBC.

Narratives

  • Pro-Trump narrative, as provided by Bloomberg and Wsj. This approach to trade reflects Trump's broader 'America First' economic policy. The BRICS alliance represents a direct challenge to US economic dominance. It must be prevented from undermining the dollar's global position through the creation of alternative currencies that could help rogue nations like Russia and Iran circumvent Western sanctions.
  • Anti-Trump narrative, as provided by BBC News and The Times of India. Trump's threat is unrealistic, as massive tariffs would harm US consumers through higher prices and damage crucial international trade relationships. His announcement is more of an opening bid than a promise, as it's unclear if BRICS will create any alternatives to the US dollar, given the significant economic and political differences among member nations.

Predictions