US President-elect Donald Trump has threatened 100% tariffs on nine nations if they challenge the US dollar.
Trump Targets BRICS Nations
Trump criticized the BRICS alliance—Brazil, Russia, India, China, South Africa, and others—for exploring alternatives to the dollar. On social media, he declared, “The idea of moving away from the Dollar while we watch is OVER.”
Leaders from Brazil and Russia have discussed a shared BRICS currency to reduce reliance on the dollar. Internal disagreements have slowed progress. Trump demanded a commitment from these nations to avoid replacing the dollar. He warned of tariffs and exclusion from the US economy if they pursue this.
“They can go find another sucker,” Trump wrote on Truth Social.
Some allies view Trump’s threats as negotiation tactics. Republican Senator Ted Cruz emphasized the strategic use of leverage in trade.
Tariffs as a Negotiating Tool
Trump has long supported tariffs to protect US jobs and generate revenue. A tariff is a tax on imports, paid by domestic companies to the US government. For example, a $50,000 car with a 25% tariff faces a $12,500 tax.
Economists argue that tariffs often increase costs for US consumers. Still, Trump claims they burden foreign exporters instead.
Trump’s Treasury Secretary nominee, Scott Bessent, suggested Trump’s tariff threats are part of his negotiation strategy. “It’s escalate to de-escalate,” Bessent said.
Trump imposed tariffs during his first term, many of which remain under President Biden. Economic studies show US consumers bore much of the cost.
