Donald Trump warned BRICS nations that the Dollar cannot be ignored. If BRICS nation replaces the dollar and transacts in their currency they will be implied with a 100 % tariff.
American President Trump seems agitated over this particular matter from BRICS countries. This warning comes as an outcome when in the last BRICS Summit the countries intensified the conversation of de dollarizing the transactions. With this they wanted to reduce the reliance and dependency on US dollar in their international trade. which further aims to mitigate and refrain dollar related risks and provide economic sovereignty.
BRICS vs Trump
BRICS nation which involves Brazil, Russia, India, China and South Africa collectively endorsed to initiation of cross country payments in their local currency than dollar. Joint Statement released ” We welcome the use of local currencies in financial transactions between BRICS countries and their trading Partners.” By this the reduction of use of dollar and balance of Global financial aspects made Trump angry.
Unified BRICS currency warned by Trump
Beyond this Bilateral currency agreement, the real problem was geopolitical implications and USA reaction. BRICS have got varied reaction on global stage. The major reaction came out of USA after Trump came in action. Notably Trump asserted the statement ” GAME of Ignoring the dollar wont work” and highlighting the potential consequences of this. Though internally the DE dollarizing action has internal infrastructural challenges but after the Trump presidency the decision will be infected even more.
100 days ago Putin calls for new trade method along with all BRICS nation the BRICS pay a decentralised Payment messaging system introduced in Kazan conference. The scheme involves inter trade without converting currency to US dollars by utilising blockchain technology, effectively circumventing the SWIFT network.
Trump said America wants nations to know that America understands that BRICS is giving open challenge to Dollar and will accept it as it is wont happen. Trump added on Truth Social that It is an open challenge to America’s reputation. He added We want these hostile to neither create BRICS pay to challenge Dominance of US dollar.
The idea that BRICS countries will make this happen and America will stand by and watch will not happen. They have to commit that this thing will stop or they will imposed 100 percent tariffs and have to stop thinking about continuing trade in USA. there is no chance that USA can be replaced but they can go try to find any other sucker nation. He further added in the post,” Say Hello to Tariffs and Goodbye to America!”
In 14th BRICS 2022 this issue was raised to have exchanges in local currency. After this 40 countries were wanting to join BRICS. IN 2023 BRICS Summit invited Argentina, Egypt, Ethiopia , Iran, UAE and Saudi arabia to join as members of BRICS. And they became member in 2024. America was feared of the shift of power which can happen with this movement.
People reaction on Trump’s post
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