US President Donald Trump has vehemently criticized the BRICS group, threatening extreme economic measures if it attempts to establish a rival currency to the US dollar. Trump declared that BRICS would face a 100 percent tariff if it mentioned such a plan, asserting that the group was essentially “dead” following this warning. Despite Trump’s harsh stance, the proposal for a BRICS currency has already been rejected by India, a founding member and the second-largest economy within the group. Trump’s comments came ahead of his meeting with Indian Prime Minister Narendra Modi, and after signing a memorandum on reciprocal tariffs.
BRICS, initially comprising Brazil, Russia, India, China, and South Africa, serves as a platform for emerging economies. It has recently broadened its membership to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, with several other nations designated as partner countries. Although BRICS wields considerable global population representation, it is not a free trade organization, and internal trade rivalries persist. One of its notable initiatives is the New Development Bank, dedicated to providing concessional loans and fostering cooperation in sectors such as telecommunications and business development.
President Trump’s statements underscore his apprehension about a potential challenge to the dominance of the US dollar, perceiving a BRICS currency as an outsized threat to international trade. Despite his strong rhetoric, Indian officials, including PM Modi and External Affairs Minister S. Jaishankar, have dismissed the idea of a BRICS currency. Trump remarked that BRICS members would prefer to continue trading with the US, as the prospect of severe tariffs deters any serious consideration of a new currency within the bloc.
Original Source: https://www.morungexpress.com/trump-launches-attack-on-brics-threatens-100-pc-tariff-if-it-launched-currency
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Publish Date: 2025-02-14 09:42:00
