Trump warns India and China over BRICS currency plans

In 2009, the BRICS group was formed as an alternative to the U.S.-dominated global economy, especially to challenge the U.S. dollar’s control over world trade. 

At first, BRICS included just five countries: Brazil, Russia, India, China, and South Africa. But now, the group has grown to nine members. 

Egypt, Ethiopia, Iran, and the United Arab Emirates have joined, while countries like Turkey, Azerbaijan, and Malaysia are also looking to join.

Under China’s leadership, BRICS is becoming a more powerful force in the global economy. The countries in BRICS together make up 45% of the world’s population and control around 30% of the planet’s land. 

These nations want to reduce their dependence on the U.S. and expand their own trade relationships.

One of the big goals of BRICS is to move away from using the U.S. dollar for transactions between member countries. 

In their latest summit in October, countries like Brazil, Russia, India, China, and South Africa agreed to explore this idea.

This has raised alarms in the U.S., as the dollar has long been the dominant currency in global trade. 

In response, Donald Trump, who will take office again as president on January 20, has issued a warning to BRICS countries. 

He strongly opposes the creation of a new BRICS currency and has told countries like India, China, and Russia that if they go ahead with it, the U.S. will impose a 100% tariff on goods from those countries.

Trump has been clear about his position on BRICS for some time. During his campaign for re-election, he made it known that he believes the U.S. dollar’s role in global trade should not be challenged. 

He has demanded that BRICS countries promise they will not create a new currency. If they do, Trump warned, they would face serious economic consequences.

The U.S. dollar is currently the world’s most used currency. 

According to the International Monetary Fund (IMF), it makes up about 58% of global foreign exchange reserves, and most major international trades, especially in oil, are still done in dollars. But as BRICS grows and looks for ways to reduce its dependence on the dollar, some experts believe that the dollar’s dominance could be in trouble.

Trump has been outspoken about the importance of the U.S. dollar even before his presidency. He has often promised to raise tariffs on other countries, and he pointed out that China and other nations already impose much higher tariffs on U.S. goods than the U.S. does on theirs. 

For example, Trump mentioned that China charges a 200% tariff on American products and that Brazil also imposes significant tariffs.

Trump has also called India one of the biggest offenders when it comes to tariffs. 

Despite his close relationship with Indian Prime Minister Narendra Modi, Trump has made it clear that the U.S. will act in its own interests when it comes to trade. 

He said, "The biggest tariff-charging country is India. They probably charge even more than China in some ways. But they do it with a smile and make it seem like it’s no big deal. They say, ‘Thank you for buying from India.’”

Trump has consistently argued that BRICS will not be able to challenge the dominance of the U.S. dollar in global trade. 

He’s warned that any country that tries to move away from the dollar will not have a strong relationship with the U.S.

Research shows that the U.S. dollar’s dominance may soon be at risk. As BRICS grows stronger and pushes for alternatives to the dollar, it could potentially weaken the U.S. dollar’s grip on global reserves and international trade.