At the BRICS summit in Kazan, Russia on October 23, 2024, attended by world leaders including Chinese President Xi Jinping, Russian President Vladimir Putin, and Indian Prime Minister Narendra Modi, heightened tensions surrounding global currency dominance took center stage. President-elect Donald Trump announced his intention to impose 100% tariffs on a bloc of nine nations if they continue efforts to challenge the U.S. dollar’s supremacy. This threat targets the BRIC alliance—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE—as well as nations seeking to join like Turkey, Azerbaijan, and Malaysia.
The U.S. dollar still dominates global trade, comprising 58% of foreign exchange reserves, but BRICS nations actively seek “de-dollarization” to reduce reliance on the dollar. At the summit, Putin criticized the U.S. for “weaponizing” the dollar, arguing it forces other countries to find alternatives. Russia is advocating for a new payment system to bypass Western sanctions and enable trade with partners.
Trump, on Truth Social, demanded these countries abandon any plans to introduce a new BRICS currency or support alternatives, warning of severe tariffs if they do not comply. Despite these threats, studies including an Atlantic Council model affirm the dollar remains “secure in the near and medium term” as the primary global reserve currency.
This development follows earlier tariff threats by Trump against Mexico, Canada, and China to address illegal immigration and drug trafficking. Although Mexican President Claudia Sheinbaum believes a tariff conflict with the U.S. can be avoided, Canadian Prime Minister Justin Trudeau returned from a meeting with Trump without assurance that threatened tariffs on Canada would be rescinded. The situation underscores evolving geopolitical tensions as global powers navigate changing financial landscapes.
Original Story https://www.cnbc.com/2024/11/30/trump-threatens-100percent-tariff-on-the-bric-bloc-of-nations-if-they-act-to-undermine-us-dollar.html
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