Former U.S. President Donald Trump has issued a warning that if the BRICS alliance, led by China and Russia, introduces a new currency or adopts an alternative system to existing currencies for global trade, the United States will impose 100% tariffs on the member countries. He posted this warning on Truth Social on Saturday (November 30).

Trump stated, "We will no longer tolerate any attempt by BRICS countries to move away from the U.S. dollar. We want them to commit not to create a new BRICS currency or support any alternative to the dollar. Otherwise, they will face 100% tariffs and will lose access to the U.S. market."

The BRICS alliance, formed in 2011, consists of Brazil, Russia, India, China, and South Africa. This year, Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt have joined as new members. South African Foreign Minister Naledi Pandor has stated that 34 countries have shown interest in joining the group, including Bangladesh.

In 2023, Brazilian President Luiz Inácio Lula da Silva proposed launching a common BRICS currency to reduce reliance on the U.S. dollar.

If BRICS adopts its own currency and a banking network outside of the U.S. dollar system, countries like Russia, China, and Iran could avoid Western sanctions. However, due to the differing economic and political positions within the group, the introduction of a new currency seems unlikely in the immediate future.

The BRICS bloc is particularly important for China and Russia as they view it as a platform to challenge U.S. global leadership. Russia is currently holding the chairmanship of BRICS.

At the BRICS summit in October, Russian President Vladimir Putin and Chinese President Xi Jinping tried to convey that Western countries have become isolated, and "the global majority" supports their initiatives.

Trump's recent economic threat comes at a time when he has already announced imposing large tariffs on imports from Mexico, Canada, and China, citing reasons such as illegal immigration and the need to curb "crime and drug trafficking."

Source: CNN