Donald Trump warns of 100% tariff on BRICS nations; here's why

US President-elect Donald Trump on Saturday threatened to impose 100 per cent tariffs on BRICS nations if they create a currency rivalling the American dollar. "The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER," Trump, who is set to take office on January 20, wrote on microblogging site X (formerly Twitter). 

The BRICS bloc, which is formed mostly of emerging markets, comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).

Widespread tariffs were part of Trump's official campaign for the 2024 US presidential election. 

His remarks came in the backdrop against several politicians in Brazil and Russia suggesting the creation of a BRICS currency to counter the US dollar's dominance in international trade.

"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 US Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy," wrote Trump.

"There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America," he added. 

The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. 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…

— Donald J. Trump (@realDonaldTrump) November 30, 2024