NEW YORK: US President-elect Donald Trump warned the so-called BRICS nations that he would require commitments that they would not move to create a new currency as an alternative to using the US dollar and repeated threats to levy a 100% tariff.
“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is over,” Trump said in a post to his Truth Social network last Saturday.
“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,” he added.
Trump on his campaign trail pledged that he would make it costly for countries to move away from the US dollar. And he’s threatened to use tariffs to ensure they complied.
Saturday’s threat took on new relevance as the president-elect prepares to retake power in January. Trump and his economic advisers have been discussing ways to punish allies and adversaries alike who seek to engage in bilateral trade in currencies other than the dollar.
Those measures include considering options such as export controls, currency manipulation charges and levies on trade, according to people familiar with the matter. — Bloomberg
