The self-proclaimed “Tariff Man” has struck again, this time threatening the BRICS countries with 100 per cent tariffs if they try to undermine the dominance of the US dollar.
In a post on his social media platform Truth Social at the weekend, Donald Trump threatened to use his weapon of first (and second, and third) choice if they tried to create an alternative currency to rival the dollar.
Russian President Vladimir Putin has been pushing for the BRICS group to introduce its own currency.Credit: AP
“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is over,” he wrote.
“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 US dollar or, they will face 100 per cent tariffs, and should expect to say goodbye to selling into the wonderful US economy.
“They can go find another sucker.”
The BRICS countries are a core group of emerging economies – Brazil, Russia, India, China and South Africa – which has been expanding to include Egypt, Ethiopia, Iran and the United Arab Emirates and for which there is a lengthening queue of aspiring members whose common interest is dissatisfaction with the dominance of the US and its Western allies of global institutions. Between them, their economies represent close to 40 per cent of the global economy.
Effectively, the BRICS group represents a fuzzy intersection point and discussion forum for the Global East, dominated by China and with lesser roles for Russia and Iran, and the Global South, led by Brazil and South Africa but broadly including Latin America and Africa.
While they have in common a resentment of US and G7 dominance of multilateralism and its institutions – like the International Monetary Fund and the World Bank – they are a disparate group with very different interests, ambitions and economies.
There has been a lot of talk within the BRICS grouping about “de-dollarisation”, particularly after the G7........