President-elect Donald Trump threatened to impose 100 percent tariffs on Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, known as the BRICS group of nations. BRICS is an acronym for the founding member countries Brazil, Russia, India, China, and South Africa.
There have been discussions among BRICS to move away from using the U.S. dollar and developing a common currency. In response to this, President-elect Trump stated in late November on social media, "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, and should expect to say goodbye to selling into the wonderful U.S. Economy."
This approach is likely to impact the growth of BRICS' memberships, as the assumption is that countries that have been eager to join the group of nations might suspend their applications for the next four years. A majority of the member countries are strong trading partners of the U.S. and would rather not be hit with 100 percent tariffs. Saudi Arabia, for example, has been invited to join BRICS, but is yet to respond to this invitation and is likely not to do so anytime soon or might reject the offer following this announcement.
President-elect Donald Trump on Saturday threatened 100% tariffs against a bloc of nine nations if they act to undermine the U.S. dollar.
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