Donald Trump, the President-elect of the United States, has vowed to impose 100% tariffs on goods from BRICS countries if they try to use a different currency instead of the U.S. dollar in their trade. He wants to keep the dollar as the main currency used in trade around the world and stop other countries from not using it.
Trump made this announcement on his official Facebook page, saying that the concept of BRICS countries shifting away from the dollar while the U.S. does nothing is “done. He asked the governments of countries thinking about this change to reconsider. He warned that he might use special punishments, like charging very high taxes and stopping trade with them.
The BRICS group, which includes Brazil, Russia, India, China, and South Africa, wants to use fewer U.S. dollars in their business and deals. They want to depend less on the U.S. dollar. Nigeria has now become a partner with BRICS, making their economic connections with the group even stronger.
Trump’s response indicates that the U.S. government’s dealings with various countries might become stricter in the coming months. The suggested tariffs could greatly affect global trade, especially since the U.S. dollar makes up 59% of the world’s official foreign-exchange reserves.