Trump Criticizes BRICS; Warns of 100% Tariff on New Currency
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Synopsis
On February 14, US President Donald Trump criticized BRICS, stating it would be 'dead' if it attempted to create a rival currency, despite India's opposition. He threatened a 100% tariff on any such initiative, highlighting ongoing trade tensions between the US and BRICS nations.
Key Takeaways
- Trump declares BRICS would be 'dead' with a rival currency.
- Threatens 100% tariffs on any new BRICS currency.
- India has ruled out the possibility of a BRICS currency.
- BRICS includes emerging economies but faces internal trade rivalries.
- New Development Bank facilitates economic cooperation among BRICS members.
New York, Feb 14 (NationPress) US President Donald Trump has made a fierce critique of BRICS, asserting that it would be “dead” if it pursued a competing currency, despite India having dismissed the idea.
If BRICS intends “to play games with the dollar,” then they’ll face a 100 percent tariff the moment they express such intentions, Trump declared on Thursday while addressing reporters prior to his meeting with Prime Minister Narendra Modi.
He had just enacted a memorandum on reciprocal tariffs, mandating his nominees for key commerce and international trade positions to devise retaliatory tariff proposals equivalent to what each nation imposes on US imports.
“BRICS was established for a negative reason,” Trump remarked, going beyond the currency discussion.
“And most of those nations ... are reluctant to even discuss it now.”
“BRICS is dead ... BRICS ceased to exist the moment I mentioned tariffs,” he responded in a lengthy reply to a reporter questioning whether he preferred the dismantling of BRICS or cooperation with it.
Trump has frequently highlighted what he perceives as a rivalry with the dollar stemming from a BRICS currency, amplifying its threat by envisioning it as a monetary tool for global commerce.
PM Modi and External Affairs Minister S. Jaishankar have categorically eliminated the possibility of a BRICS currency.
As a founding member of BRICS and its second-largest economy, India’s approval would be essential for the establishment of such a currency.
“Those nations will trade with us, and we will trade with them,” Trump stated regarding BRICS.
However, if they develop a currency, “any trade that occurs will incur a 100 percent tariff,” he warned.
Upon hearing this, “they don’t even want to acknowledge their membership in BRICS,” he added.
BRICS began with Brazil, Russia, India, China, and South Africa as a collective for emerging economies and has since expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
Countries such as Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam hold “partner country” status with BRICS.
Representing the world’s largest population group, BRICS is not a free trade organization, and its members often experience trade tensions.
Among its initiatives is the New Development Bank, which focuses on concessional lending and collaboration in areas such as telecommunications and business development.
