Trump : As Donald Trump assumes office in January, the globe may witness a second wave of tariff war. The US President-elect has warned a 100% tariff on the BRICS countries, including India, if they undercut or replace the US dollar in international dealings. His views come after a BRICS meeting in October where the topic of increasing non-dollar transactions was discussed.The BRICS alliance consists of Brazil, Russia, India, China, South Africa, as well as additional countries.
Trump declared in a blistering online article this morning that he will not stand by and watch the BRICS abandon the dollar.
“The notion that the BRICS countries are attempting to abandon the dollar while we stand by and watch is dead. We require a commitment from these countries that they will not create a new BRICS currency or back any other currency to replace the mighty US dollar, or they will face 100% tariffs and should expect to say goodbye to offering into the excellent US economy,” said the Republican leader who won an important victory in last month’s election for president.
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BRICS and the US dollar
At a summit in Russia’s Kazan in October, the BRICS countries, which now include Egypt, Iran, and the UAE, addressed growing non-dollar trade and strengthening local currencies.
The October summit produced a consensus declaration calling for the “a strengthening of correspondents banking networks within BRICS and enabling transactions in regional currencies in line with the BRICS Global Payments Initiative”.
However, Russia’s President Vladimir Putin stated at the summit’s conclusion that no alternatives have been developed to compete with the Belgian-based SWIFT finance messaging system.
India, too, has expressed opposition to dedollarisation. Foreign Minister S Jaishankar stated in October that such actions are not part of India’s economic, political, or strategic interests. However, he stated that workarounds are considered when trading partners refuse to accept dollars or when complications arise as a result of trade regulations.
Trump, Tariffs and India
Trump has already expressed dissatisfaction with India’s tariff structure, as well as with Brazil and China. His tariff strategy for 2025 incorporates the principle of reciprocity against protectionist regimes. A month before the elections, Trump stated that this was the most crucial component of his strategy to make the United States “extraordinarily wealthy”.
“Reciprocity is a key phrase in my strategy because we often do not impose tariffs. I started that procedure, which was fantastic, with the vans and small vehicles, etc. We actually do not charge anything. China will levy a tax of 200 percent. “Brazil is a massive charger,” he said in October.
“The greatest generator of all is India,” he claimed, but he also praised Prime Minister Narendra Modi and India-US relations.
“I mean, I believe they charge more than China does in many areas. However, they do it with a smile. They do… It was a nicer fee. “They said thank you very much for importing from India,” he informed the Detroit Business Club.
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