President-elect Donald Trump is once again threatening to use tariffs against foreign nations, this time targeting the BRIC alliance – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates – if they attempt to undermine the dominance of the U.S. dollar. Trump has warned that he will impose 100% tariffs and block their goods from entering the U.S. economy if they move away from the dollar or try to create a new currency. The U.S. dollar has been the dominant global currency since World War II, representing roughly 58% of the world’s foreign exchange reserves.
The BRIC alliance has expanded to include other nations and has expressed a desire to reduce dependence on the U.S. dollar. In recent years, some members have started using alternative currencies like the Chinese Yuan and the Russian ruble in their trading. This shift, known as “de-dollarization,” has raised concerns among U.S. leaders, including Trump.
Trump’s latest tariff threats are part of a broader foreign policy strategy aimed at both foes and allies. He has also proposed tariffs on imports from Mexico, Canada, and China as a means of addressing issues like illegal immigration and drug trafficking. Trump’s strong stance on tariffs and the U.S. dollar’s global dominance reflect his commitment to protecting American economic interests on the world stage.
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