President-elect Trump warned nations to forego efforts to adopt a new currency on Saturday by threatening to impose a 100 percent tariff on countries that try to undervalue the U.S. dollar.
“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 or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump posted on Truth Social.
“They can go find another ‘sucker!’ There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
The nine-member organization known as BRICS initiated discussions surrounding the creation of their own currency system at their October summit in Kazan, Russia, where 13 new partner nations were welcomed.
The leaders of Brazil, Russia, India, China and South Africa, all original members, spoke openly about plans to create the “Unit,” a currency upheld by member nations and gold reserves.
China’s President Xi Jinping said the BRICS group is “a vanguard for advancing global governance reform” and “reform of the international financial architecture,” according to the Global Economic Report outlet.
Bolivia’s President Luis Arce argued that “the shield of BRICS and multipolarity” would protect the new member nation from “Western unipolarity and the tyranny of the dollar,” as reported in the article.
Many of the conjoined nations are looking to break away from the U.S. dollar which dominates currency and oil trading, as noted by the International Monetary Fund.
However, Trump has aggressively affirmed that the fold would not take place during his administration. The former president has promised to slap Canada, Mexico and China with high tariffs with the goal of using financial leverage for economic and political stability.
President Biden and other world leaders have opposed this strategy by urging the Republican to re-think his approach. Nonetheless, Trump said he would implement these unprecedented trade policies on day one.
