Donald Trump has warned that he would impose a 100% tariff on a group of nine nations, collectively known as BRICS, if they attempt to develop a currency to rival the US dollar. Trump made this statement on social media on Saturday, asserting that the United States would no longer tolerate attempts by BRICS countries to move away from the dollar. This group includes major global powers such as China and Russia, along with Brazil, India, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.
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During his presidential campaign, Trump advocated for the use of tariffs, and in recent days, he has increased his threats of imposing heavy levies. His comments were targeted at the BRICS nations, which have discussed creating a shared currency to reduce the US dollar's dominance in global trade. However, internal disagreements have hindered any significant progress toward this goal.
Trump demanded that BRICS countries refrain from developing a new currency or endorsing any alternative currency to the dollar. He warned that failing to comply would result in 100% tariffs, making it impossible for these nations to continue trading with the US. Trump further dismissed these countries' attempts, saying they could "find another sucker."
Some of Trump's supporters believe his comments are a negotiating tactic, rather than a definitive threat.
Tariffs, a central aspect of Trump's economic policy, are taxes imposed on imported goods, usually paid by domestic companies in the US rather than foreign exporters. Though Trump claims these taxes don't impact US consumers, many economists argue that the economic burden is ultimately passed on to them.
Source: www.bbc.com