By John Ikani
Rising tensions over global trade have emerged after Donald Trump threatened to introduce 100% tariffs on Brics nations if they move forward with plans to create a currency competing with the US dollar.
Posting on Truth Social on Saturday, Trump warned of severe consequences for countries that back an alternative currency to challenge the dollar’s dominance.
“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% tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump said.
“They can go find another sucker. There is no chance that the Brics will replace the US dollar in international trade, and any country that tries should wave goodbye to America,” he added.
Trump’s remarks came shortly after his pledge to impose tariffs on Canada, Mexico, and China should he take office as president.
The Brics bloc, which began with Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, the UAE, Ethiopia, and Iran.
While some members have advocated for reducing reliance on the dollar in global trade, others fear the economic and political risks of such a move. In October, Vladimir Putin pushed for a payment system that could sidestep the dollar’s role as a tool of US political influence. However, abandoning the dollar could strain relations with the US and other Western nations, as it remains central to global finance.
If implemented, a 100% tariff on Brics exports to the US would sharply increase prices, fueling inflation domestically while disrupting trade networks worldwide.
Stephen Innes, a managing partner at SPI Asset Management, described Trump’s proposal as a bold and provocative move.
“Trump’s recent electoral triumph was heavily fortified by his promise to impose harsh tariffs on foreign imports to the US, advocating for an aggressive 60% tariff on Chinese goods,” he said.
“This hardline approach on trade reflects Trump’s broader ‘America First’ economic policy, which aims to recalibrate global trade dynamics and reinforce US economic sovereignty. As the world watches, the potential for a global trade upheaval looms, setting the stage for a contentious start to Trump’s administration.”
