US President-elect Donald Trump has threatened to impose 100% tariffs on BRICS countries if they attempt creating a new currency.
Mr Trump made the threat in a statement posted on his X handle on Saturday.
He said, “The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is over.’’
Mr Trump also noted that countries that defaulted wouldn’t be allowed to sell into the US economy.
He stated, “We require a commitment from these countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty U.S. dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
Days ago, Mr Trump pledged massive hikes in tariffs on goods coming from Mexico, Canada and China starting on the first day of his administration. He said the move was retaliation for illegal immigration and “crime and drugs” coming across the border.
For more than a decade now, BRICS had been made up of Brazil, Russia, India, China and South Africa. Countries such as Saudi Arabia, Iran, the United Arab Emirates, Egypt and Ethiopia formally joined the bloc earlier this year.
In October, Brazilian President Lula da Silva defended the creation of alternate means of payment for commercial transactions between the BRICS countries, stating that the measure would lessen vulnerabilities and challenges facing these nations in the international financial system.
