President-elect Donald Trump has issued a warning to the BRICS countries, including India, threatening a 100% tariff if they move away from using the US dollar for international transactions. This comes after the BRICS countries discussed boosting non-dollar transactions at a meeting in October. Trump stated that the US will not stand by if the BRICS attempts to replace the dollar with another currency. He emphasized the importance of the US dollar in international trade and warned that any country attempting to replace it would face consequences.
The BRICS countries, which include Brazil, Russia, India, China, South Africa, and others, have been exploring alternatives to the dollar for international transactions. However, Russia’s President Vladimir Putin indicated that no concrete alternatives have been developed to compete with the current system. India has also clarified that de-dollarization is not a part of its economic or strategic policies, but it is open to exploring workarounds in certain cases.
Trump’s tariff plan for 2025 includes reciprocity against protectionist regimes, with a focus on countries that charge high tariffs. Trump has previously criticized India’s tariff regime, but has also praised Prime Minister Narendra Modi and the India-US relationship. He emphasized the importance of reciprocity in trade agreements to ensure that the US benefits economically.
As Trump prepares to take office in January, his stance on tariffs and international trade will be closely watched by countries like India and others in the BRICS group. The potential for a second wave of tariff wars looms as Trump positions the US to protect the dollar’s dominance in global trade.
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