New Delhi: The US’s next president, Donald Trump, has threatened to impose “100% tariffs” on the BRICS countries – among which is India – if they create a currency to rival the US dollar.
Tariffs are a form of tax imposed on imported goods.
Trump wrote on his social media accounts on December 1:
“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 will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
He added:
“They can go find another “sucker!” There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
Among BRICS countries are China and Russia, two powers the US is wary of. At the BRICS summit in October, Russia’s Vladimir Putin had called for an alternative international payments system that could prevent the US from using the dollar as a political weapon.
Along with India, other countries in the alliance are Brazil, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates. The Guardian had noted that the move to de-dollarise the world economy unnerves some BRICS members like Brazil and India “that do not want their rapidly expanding club to become solely pro-Chinese and anti-western.”
Trump will assume office on January 20.
He had, days ago, said that he plans to impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China, citing concerns over illegal immigration and the trade of illicit drugs. In its aftermath, Canadian prime minister Justin Trudeau is reported to have made an unscheduled trip to Trump’s Florida estate Mar-a-Lago.
Tariff promises had marked Trump’s election campaign as well and particularly targeted China.
