12/1/2024 Trump's Tariff Threats Against BRICS for Undercutting US Dollar

Trump's Tariff Threats Against BRICS for Undercutting US Dollar

Date: December 1, 2024

Subject: Donald Trump's Threat of 100% Tariffs on BRICS Nations

Sources:

• AFP News Service

• Hong Kong Free Press

• "Real News Now"

• Daily Wire

• telesurtv.net

Summary:

Former President Donald Trump, recently re-elected, has issued a stark warning to the BRICS nations (Brazil, Russia, India, China, South Africa, and others), threatening a 100% tariff on their exports to the United States if they proceed with plans to reduce reliance on the US dollar in international trade. Trump asserts that any attempt to replace the dollar's dominance would be met with severe economic repercussions.

Key Themes:

• US Dollar Supremacy: Trump emphasizes the importance of maintaining the US dollar's position as the primary currency for global trade. He views any move away from the dollar as a direct challenge to US economic power and sovereignty.

• Protectionist Trade Policy: The tariff threat underscores Trump's aggressive and protectionist approach to trade. He is willing to use tariffs as a weapon to safeguard American economic interests, even against major economies like those in the BRICS group.

• BRICS Expansion and De-Dollarization Efforts: The BRICS bloc's recent expansion and discussions about reducing dollar dependence have raised concerns in the US. Trump sees these efforts as a potential threat to the dollar's global reserve currency status.

Important Facts and Quotes:

• Trump's Tariff Threat: "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." (Source: DailyWire.com)

• BRICS Alternative Currency Discussions: "The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER." (Source: DailyWire.com)

• Trump's View on Losing Dollar Dominance: "Trump told CNBC in March that he will “not allow countries to go off the dollar because when we lose that standard, that will be like losing a revolutionary war, that will be a hit to our country just like losing a war and we can’t let that happen and too many countries now are fighting to get off the dollar.” (Source: DailyWire.com)

• Putin's Stance on a BRICS Currency: "As for a unified BRICS currency, we are not considering that question at the moment.” (Source: AFP via HKFP)

Potential Implications:

• Trade Wars: Trump's aggressive stance could lead to retaliatory measures from BRICS nations, escalating into damaging trade wars.

• Global Economic Uncertainty: The threat of tariffs could create uncertainty in the global economy, potentially impacting investment and growth.

• Shifting Global Power Dynamics: If BRICS countries successfully move away from the US dollar, it could signal a shift in global power dynamics and a decline in US economic influence.

Next Steps:

• Monitoring BRICS Actions: It is crucial to closely monitor the actions and statements of BRICS leaders in response to Trump's threats.

• Assessing Potential Economic Impacts: Further analysis is needed to assess the potential economic consequences of imposing tariffs on BRICS exports to the US.

• Exploring Diplomatic Solutions: The US should explore diplomatic channels to address concerns about de-dollarization efforts while avoiding a trade war.

Timeline of Events

August 2023: The 15th BRICS summit is held in South Africa. Discussions center around increasing non-dollar transactions and strengthening local currencies as a way to decrease reliance on the US dollar and the euro.

October 2023: A BRICS summit takes place in Kazan, Russia. Further discussions on a unified BRICS currency and alternatives to the SWIFT financial messaging system occur, but no concrete decisions are made.

November 30, 2024: President-elect Donald Trump issues statements threatening 100% tariffs on any BRICS nation that moves away from the US dollar. This threat comes amidst other protectionist policies, including planned tariffs on Mexico and Canada to combat drug trafficking and illegal immigration.

December 1, 2024: News outlets around the world report on Trump’s tariff threats against the BRICS nations.

Cast of Characters

Donald Trump: President-elect of the United States. Advocate for protectionist economic policies and a strong US dollar. Threatens tariffs against nations seeking to diminish the global dominance of the US dollar.

Vladimir Putin: President of Russia. Attendee at BRICS summits. Cautious about rushing into a unified BRICS currency, favoring a gradual approach to increasing the use of local currencies within the bloc.

Justin Trudeau: Prime Minister of Canada. Meets with Trump to discuss issues including drug trafficking, illegal immigration, and trade deficits.

BRICS Nations:

• Brazil: Member of BRICS, seeking to reduce reliance on the US dollar.

• Russia: Member of BRICS, hosting summits and participating in discussions on alternative currencies.

• India: Member of BRICS, interested in boosting non-dollar transactions.

• China: Member of BRICS, facing potential US tariffs over fentanyl trafficking.

• South Africa: Member of BRICS, hosting a summit in 2023.

• Iran: New member of BRICS, seeking to diminish US influence.

• Saudi Arabia: New member of BRICS, major player in the global oil market.

• United Arab Emirates: New member of BRICS, interested in alternative currencies.

• Argentina: New member of BRICS, with an economy vulnerable to US influence.

• Egypt: New member of BRICS, strategically located in North Africa.

• Ethiopia: New member of BRICS, with a rapidly developing economy.