Donald Trump announced Saturday he would impose a 100% tariff on BRICS nations if they try to replace the dollar in international trade, impacting a group of major developing economies whose members include Russia, India, China and Iran, among others, marking the latest threats by the president-elect to impose tariffs on imports from several countries.
The proposed tariffs would remain until those nations commit to not backing a new currency to replace the dollar, Trump said.
In a post on Truth Social, Trump said the 100% tariff would affect all BRICS countries—Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates—until they commit to not creating a new BRICS currency or back another currency that could replace the “mighty” dollar.
Brazilian President Inacio Luiz called on BRICS nations to develop an alternative to the dollar in foreign trade last year, arguing countries that don’t use the dollar should not be forced to use the currency, while suggesting a new BRICS-supported currency “increases our payment options and reduces our vulnerabilities.”
There is “no chance” BRICS could replace the dollar in international trade, and any country that tries to do so should “wave goodbye to America,” Trump said.
“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump wrote, adding the nations “should expect to say goodbye to selling into the wonderful U.S. economy.”
Trump’s proposed tariffs on imports from BRICS nations is his latest economic threat in recent weeks. BRICS was founded as an informal international group in 2006 by Brazil, Russia, India and China, though its membership expanded to more nations with “reflecting common stances on topical global development issues,” according to the organization. The group has increasingly called for reduced dependence on the U.S. as it aims to establish new financial organizations. Earlier this month, Trump announced a 10% tariff on Chinese goods and a 25% tariff on all products from Mexico and Canada, which he said would remain until the three nations curb the flow of fentanyl into the U.S. and migrants. Trump has claimed the tariffs would protect American jobs, though experts have claimed his proposed tariffs could substantially raise prices for American consumers. During his first administration, Trump launched a trade war with China after imposing tariffs that targeted $200 billion worth of Chinese imports.
Canadian Prime Minister Justin Trudeau said Saturday he had an “excellent conversation” with Trump after he threatened Canada with tariffs. The pair had a “positive wide-ranging dinner” with topics that included trade, border security, Ukraine and China, among others, according to the Associated Press. President Claudia Sheinbaum suggested earlier this week Mexico would impose tariffs on the U.S. in response to Trump’s tariff proposals. Sheinbaum said she would be meeting with Trump “soon.”
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