Washington, D.C. – December 1, 2024 — In a move that could ignite a global economic standoff, President-elect Donald Trump announced that his administration will impose a 100% tariff on imports from BRICS nations if they proceed with plans to introduce a new currency aimed at challenging the U.S. dollar’s dominance.

In a fiery post on Truth Social, Trump declared, “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 U.S. dollar. If they refuse, they will face 100% tariffs and can say goodbye to accessing the wonderful U.S. economy.”

BRICS Expansion Raises U.S. Concerns

The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa since 2011—recently expanded to include Iran, Saudi Arabia, Egypt, Ethiopia, and the UAE. The expansion has heightened concerns in Washington about the bloc’s growing influence and potential efforts to undermine the U.S. dollar in global trade.

Earlier this year, BRICS nations discussed creating a common currency to facilitate trade among member states and reduce dependence on the dollar. While no formal agreement has been reached, the idea has gained traction, particularly as countries like China and Russia push for alternatives amid rising tensions with the U.S.

According to South African Foreign Minister Naledi Pandor, over 30 countries have expressed interest in joining BRICS, signaling a growing desire among emerging economies to reduce their reliance on the Western-led financial system.

Trump’s Stance on De-Dollarization

Trump’s comments come amid ongoing discussions within BRICS about “de-dollarization,” a strategy aimed at shifting away from the dollar in international trade. Analysts warn that such efforts, if successful, could weaken the dollar’s global reserve currency status, potentially affecting U.S. economic leverage.

“The dollar has been under siege for the past eight years,” Trump said during a recent rally in Wisconsin. “Countries that leave the dollar won’t be doing business with the United States because we will impose tariffs they can’t afford.”

This marks a continuation of Trump’s protectionist economic policies, which were a hallmark of his first term. By leveraging tariffs, Trump aims to dissuade nations from pursuing monetary policies that could challenge U.S. economic supremacy.

Economic Implications and Reactions

Economists warn that imposing a 100% tariff on BRICS countries could have significant repercussions for both the U.S. and global economies. China, India, and Brazil are among the U.S.’s largest trading partners, and a tariff of this magnitude could disrupt supply chains, raise consumer prices, and trigger retaliatory measures from affected nations.

“Such a move would almost certainly lead to a trade war,” said Dr. Susan Patel, an international trade expert at Georgetown University. “While it may protect the dollar in the short term, it could severely harm American exporters and increase costs for U.S. consumers.”

BRICS leaders have yet to respond directly to Trump’s threats, but analysts expect a firm stance from Beijing and Moscow, both of which have been vocal about their desire to reduce dollar dependency.

A New Global Currency?

Despite the challenges, some experts believe that the creation of a BRICS currency is unlikely in the immediate future. Differences in economic systems, monetary policies, and political priorities among member nations present significant hurdles to forming a unified currency.

“While the idea of a BRICS currency is ambitious, achieving consensus will be difficult,” said Dr. Michael Huang, a global finance analyst. “The U.S. dollar’s dominance may be challenged, but replacing it entirely is a long-term endeavor.”

As Trump prepares to take office in January, his administration’s approach to BRICS and the broader issue of de-dollarization will likely shape U.S. foreign and economic policy for years to come. For now, the world watches closely as the balance of global economic power continues to shift.