Trump threatens to impose a 100% tariff on BRIC nations if they withdraw support for the US dollar

President-elect Donald Trump issued a threat to the BRIC group of emerging-market nations on his Truth Social platform, warning of 100% tariffs if they attempt to undermine the U.S. dollar as the primary global reserve currency. The BRIC alliance, consisting of Brazil, Russia, India, and China, has expanded to include nine countries, collectively accounting for 45% of the world’s population. Trump demanded a commitment that they will not create a new currency to replace the U.S. dollar, or face tariffs. The President-elect’s threat of tariffs has caused anxiety among American consumers and U.S. trading partners, as they typically result in increased costs for consumers. Trump has previously imposed tariffs on imported products, claiming that foreign countries pay them, but research shows that the costs are ultimately borne by domestic consumers. Experts warn that Trump’s proposed tariffs could increase inflation and lower economic growth in the United States. The President-elect also proposed tariffs on Mexico, Canada, and China to address the fentanyl drug overdose epidemic and illegal immigration. He has engaged in discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau but has not provided assurances regarding the threatened tariffs. Overall, Trump’s use of tariffs as an economic strategy has generated uncertainty and concern both domestically and internationally.

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