WEST PALM BEACH, Fla. — President-elect Donald Trump on Saturday threatened 100% tariffs versus a bloc of 9 countries if they act to weaken the U.S. dollar.
His risk was directed at nations in the so-called BRIC alliance, which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.
Turkey, Azerbaijan and Malaysia haveactually used to endedupbeing members and anumberof other nations haveactually revealed interest in signingupwith.
While the U.S. dollar is by far the most-used currency in international service and has madeitthrough past obstacles to its preeminence, members of the alliance and other establishing countries state they are fed up with America’s supremacy of the worldwide monetary system.
The dollar represents approximately 58% of the world’s foreign exchange reserves, according to the IMF and significant products like oil are still mainly purchased and offered utilizing dollars. The dollar’s supremacy is threatened, nevertheless, with BRICS’ growing share of GDP and the alliance’s intent to trade in non-dollar currencies — a procedure understood as de-dollarization.
Trump, in a Truth Social post, stated: “We need a dedication from these Countries that they will neither develop a brand-new BRICS Currency, nor back any other Currency to change the magnificent U.S. Dollar or, they will face 100% Tariffs, and must anticipate to state bye-bye to selling into the terrific U.S. Econom