Trump threatens BRICS with 100% tariffs to protect dollar
Press Hub UCapital
Share:
Donald Trump has threatened BRICS nations with up to 100% tariffs if they proceed with creating a currency alternative to the U.S. dollar, aiming to preserve the dollar's global dominance. The move has led to a stronger U.S. dollar in the forex markets. Meanwhile, relations with Canada are currently stable, despite previous tariff threats over trade issues like fentanyl. Investors remain uncertain about the long-term impact of Trump's protectionist policies.
Trump Presses BRICS with Trade Threats: 100% Tariffs or Dollar Dominance
Donald Trump is intensifying his protectionist policy, launching new threats against the BRICS countries. Through his social media platform, Trump warned that if the BRICS countries (Brazil, Russia, India, China, South Africa, along with new African members like Egypt, UAE, Ethiopia, and Iran) create a common currency alternative to the dollar, he will impose tariffs of up to 100% on goods imported from these nations. His goal is to maintain the U.S. dollar’s dominance in global trade.
Threats to a New Global Monetary System
Trump stated that the BRICS countries must abandon plans to create a new currency, called "BRICS Pay," which could challenge the dollar’s position in international transactions. Otherwise, he warned, they will face heavy tariffs on exports to the U.S. "They can go find another 'sucker,'" Trump said, insisting that no country will succeed in replacing the dollar in global trade.
The potential creation of an alternative currency by BRICS has long been a topic of discussion, with these countries seeking to reduce their dependence on the dollar. However, Trump’s threats signal strong opposition to any attempt to undermine the dollar’s leadership in the global economy.
Truce with Canada
Meanwhile, relations with Canada seem to be in a relatively calm phase. Canadian Prime Minister Justin Trudeau met with Trump at Mar-a-Lago after the President-elect had threatened tariffs of up to 25% on Canadian and Mexican products due to illegal fentanyl trade, a substance devastating the health of many Americans. Despite the difficulties, the meeting was described as "productive," with the two leaders discussing other trade issues and the large trade deficit the U.S. faces with Canada.
Dollar Strengthens
Trump's threats are already having an effect on the currency markets, with the U.S. dollar gaining ground against major currencies. The Dollar Index, which measures the value of the greenback against a basket of currencies, has risen by 0.4%, reaching 106.25. The euro dropped to 1.0519 USD (-0.57%), while the British pound lost 0.26%, trading at 1.2699 USD.
The effect of Trump’s protectionist policies is already impacting the currencies of countries with significant trade exposure to the U.S. Despite Trump’s fiscal policy, which could theoretically weaken the dollar, his threats are leading to a strengthening of the U.S. currency, raising concerns among investors about the potential consequences on global markets.
Trump Presses BRICS with Trade Threats: 100% Tariffs or Dollar Dominance
Donald Trump is intensifying his protectionist policy, launching new threats against the BRICS countries. Through his social media platform, Trump warned that if the BRICS countries (Brazil, Russia, India, China, South Africa, along with new African members like Egypt, UAE, Ethiopia, and Iran) create a common currency alternative to the dollar, he will impose tariffs of up to 100% on goods imported from these nations. His goal is to maintain the U.S. dollar’s dominance in global trade.
Threats to a New Global Monetary System
Trump stated that the BRICS countries must abandon plans to create a new currency, called "BRICS Pay," which could challenge the dollar’s position in international transactions. Otherwise, he warned, they will face heavy tariffs on exports to the U.S. "They can go find another 'sucker,'" Trump said, insisting that no country will succeed in replacing the dollar in global trade.
The potential creation of an alternative currency by BRICS has long been a topic of discussion, with these countries seeking to reduce their dependence on the dollar. However, Trump’s threats signal strong opposition to any attempt to undermine the dollar’s leadership in the global economy.
Truce with Canada
Meanwhile, relations with Canada seem to be in a relatively calm phase. Canadian Prime Minister Justin Trudeau met with Trump at Mar-a-Lago after the President-elect had threatened tariffs of up to 25% on Canadian and Mexican products due to illegal fentanyl trade, a substance devastating the health of many Americans. Despite the difficulties, the meeting was described as "productive," with the two leaders discussing other trade issues and the large trade deficit the U.S. faces with Canada.
Dollar Strengthens
Trump's threats are already having an effect on the currency markets, with the U.S. dollar gaining ground against major currencies. The Dollar Index, which measures the value of the greenback against a basket of currencies, has risen by 0.4%, reaching 106.25. The euro dropped to 1.0519 USD (-0.57%), while the British pound lost 0.26%, trading at 1.2699 USD.
The effect of Trump’s protectionist policies is already impacting the currencies of countries with significant trade exposure to the U.S. Despite Trump’s fiscal policy, which could theoretically weaken the dollar, his threats are leading to a strengthening of the U.S. currency, raising concerns among investors about the potential consequences on global markets.