Trump threatens 100% tariff on the BRIC bloc of nations if they act to undermine US dollar

WEST PALM BEACH, Fla. — President-elect Donald Trump on Saturday threatened 100% tariffs against a bloc of nine nations if they act to undermine the U.S. dollar.

His threat was directed at countries in the so-called BRIC alliance, which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.

Turkey, Azerbaijan and Malaysia have applied to become members and several other countries have expressed profit in joining.

While the U.S. dollar is by far the most-used funds in global business and has survived history challenges to its preeminence, members of the alliance and other developing nations declare they are fed up with America’s dominance of the global monetary structure.

The dollar represents roughly 58% of the globe’s foreign trade reserves, according to the IMF and major raw materials like oil are still primarily bought and sold using dollars. The dollar’s dominance is threatened, however, with BRICS’ growing distribute of GDP and the alliance’s intent to trade in non-dollar currencies — a procedure known as de-dollarization.

Trump, in a Truth Social post, said: “We require a commitment from these Countries that they will neither make a recent BRICS funds, nor back any other funds to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to declare goodbye to selling into the wonderful U.S. Economy.”

At a summit of BRIC nations in October, Russian President Vladimir Putin accused the U.S. of “weaponizing” the dollar and described it as a “large mistake.”

“It’s not us who refuse to use the dollar,” Putin said at the period. “But if they don’t let us work, what can we do? We are forced to search for alternatives.”

Russia has specifically pushed for the creation of a recent remittance structure that would propose an alternative to the global lender messaging network, SWIFT, and allow Moscow to dodge Western sanctions and trade with partners.

Trump said there is “no chance” BRIC will replace the U.S. dollar in global trade and any country that tries to make that happen “should wave goodbye to America.”

Research shows that the U.S. dollar’s role as the primary global savings funds is not threatened in the near upcoming.

An Atlantic Council model that assesses the dollar’s place as the primary global savings funds states the dollar is “secure in the near and medium term” and continues to dominate other currencies.

Trump’s latest tariff threat comes after he threatened to slap 25% tariffs on everything imported from Mexico and Canada, and an additional 10% levy on goods from China, as a way to force the countries to do more to halt the flow of illegal immigration and drugs into the U.S.

He has since held a call with Mexican President Claudia Sheinbaum, who said Thursday she is confident that a tariff war with the United States can be averted. Canadian Prime Minister Justin Trudeau returned home Saturday after conference Trump, without assurances the president-elect will back away from threatened tariffs on Canada.