Media report says US President-elect Donald Trump said he would require countries that are part of BRICS to commit to not creating new currency or face 100% tariffs during his administration.
Trump reportedly posted on Truth Social on Saturday afternoon that “the idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is over.” “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,” Trump reportedly posted on Truth Social.
Meanwhile the BBC reports that some Trump allies have suggested his recent announcements have been negotiation tactics, meant as more of an opening bid than a promise.
BRICS alliance has reportedly been made up of Brazil, Russia, India, China and South Africa since 2011. The acronym was invented by Jim O'Neill, an economist who worked for Goldman Sachs. In 2001, O'Neill wrote an article that he called Building Better Global Economic BRICs. Earlier this year, Iran, the United Arab Emirates, Ethiopia and Egypt formally joined — the first expansion in over a decade.
CNN reports that South African Foreign Minister Naledi Pandor said in February that thirty-four countries have submitted an expression of interest in joining the bloc of major emerging economies.
Leading politicians in Brazil and Russia have suggested creating a Brics currency to reduce the US dollar's dominance in global trade. But internal disagreement has slowed any progress.
