Trump warned of a 100% tariff on BRICS nations if they proceed with a common currency to challenge the US dollar's dominance. BRICS, addressing multipolarity and global trade, promotes de-dollarization with initiatives like local currency exchanges. The group represents 41% of global GDP and advocates for greater global influence.
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Trump says that if BRICS launches a common currency to de-dollarize, the US will impose 100% tariffs to safeguard the dollar's supremacy.
US President Donald Trump declared BRICS “dead” and threatened a 100% tariff on all imports from BRICS nations if they proceed with launching a common currency or undermining the US dollar’s dominance.
BRICS (Brazil, Russia, India, China, and South Africa) has actively sought to reduce dependence on the US dollar. At the 2023 BRICS Summit, Russian President Vladimir Putin called for national currency settlements and enhanced banking cooperation.
In June 2024, BRICS foreign ministers reaffirmed their commitment to using local currencies in trade and financial transactions.
Trump’s threat directly targets these initiatives, and demands BRICS nations to abandon their plans for a common currency or face severe economic consequences.
BRICS originated in 2001 as “BRIC,” coined by economist Jim O’Neill to highlight Brazil, Russia, India, and China’s rising economic power. South Africa joined in 2010, expanding the group to five continents (Latin America, Eurasia, Africa).
BRICS grew to 10 full members (including Indonesia, Egypt, Iran) and 8 partner countries, representing about 41% of global GDP and half of the world’s population.
Boost intra-group trade, invest in infrastructure, and reduce vulnerabilities via institutions like the New Development Bank (NDB).
Advocate for greater representation in institutions like the IMF and World Bank, challenging Western dominance.
Address security, climate change, and multipolarity, uniting the Global South.
Achievements
BRICS nations drive significant global trade and investment, with China accounting for 19% of global GDP (PPP) in 2024.
Collaborations in renewable energy and technology aim to reshape industries.
The NDB and Contingent Reserve Arrangement (CRA) provide alternatives to Western-led institutions.
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PRACTICE QUESTION Q. Critically analyze the geopolitical implications of Donald Trump’s threat to impose 100% tariffs on BRICS nations if they launch a common currency. How might this reshape global trade dynamics? 250 words |
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