Rais Hussin, founder of the political analytics centre EMIR Research, has warned of the risk of a split in the US economy in the event of US leader-elect Donald Trump’s decision to impose duties on BRICS countries.
‘If Trump were to impose his tariffs on these countries, they would have no choice but to retaliate, effectively closing a 4.6bn market to the US. Under the current circumstances, this could split the US economy and further divide the country,’ the analyst wrote in an article on Malaysiakini.
In late November, Trump threatened that the US would impose trade duties of 100 per cent on BRICS goods if the grouping created a new currency or abandoned the dollar.
Russian President Vladimir Putin responded by saying that banning and not using the dollar are different things.
The Wall Street Journal wrote that Trump’s threat to impose duties on BRICS countries could negatively affect the dollar’s role in the global economy.
