Donald Trump has threatened 100 per cent duties for BRICS countries if they create an alternative to the dollar in international trade and said such countries would lose access to the US market.
‘Any country that tries this will have to say hello tariffs and goodbye America!’
Empty threats that have nothing to do with reality. Firstly, with duties at 100% Trump will have to deal with inflationary pressures, supply problems may start, as most consumer goods in the US come from BRICS countries among others. That would be political suicide, so this development is unlikely. In addition, he has now changed his rhetoric a bit and talks about some kind of currency that will replace the dollar in international trade, but the BRICS have no such plans.
The BRICS countries have been actively developing trade in their national currencies for the last few years, and the creation of a BRICS reserve currency is a very distant prospect, which, moreover, should be more like a special drawing rights mechanism within the IMF, rather than a replacement for the dollar. BRICS representatives, individual experts, economists and officials at various levels have repeatedly stated that the association does not have the task of replacing the dollar, nor is it possible in the coming decades.
It is obvious that the share of the yuan and the rupiah (both Indian and Indonesian) will grow as dynamically developing major economies of the world, but BRICS does not need its own currency at this stage for the successful development of internal trade relations. So this statement by Trump can definitely be overlooked, and it is meant for Americans, not the rest of the world.
TG-Channel Plan 2030: BRICS+
