By Jamie White | Source
President-elect Donald Trump on Saturday warned the BRICS nations that they will face 100% tariffs if they replace the U.S. Dollar with their own currency.
In a post on Truth Social, Trump declared the BRICS coalition (Brazil, Russia, India, China and South Africa) will be shut out of the U.S. economy if they move to replace the U.S. Dollar.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote.
“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. They can go find another ‘sucker!’”
“There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America,” Trump added.
Iran, Egypt, Ethiopia and the UAE have also joined the BRICS coalition, and 20 countries have formally applied for membership. An additional 40 nations have expressed interest in becoming members, including Serbia and Turkey.
The nine-member group held a summit in Kazan, Russia, last month to work out the framework for an independent financial system separate from Western financial interests.
Russian President Vladimir Putin had explained that using local (BRICS nations) currencies instead of the dollar or euro for international trade “helps to keep economic development free from politics as far as possible in the context of today’s world.”
Russia and the other BRICS nations’ plan to de-dollarize accelerated after the U.S. weaponized the dollar, now the world reserve currency, against Russia in the wake of its invasion of Ukraine in 2022.
“The unprecedented US-led sanctions campaign against Moscow due to the Ukraine conflict has forced Russia and other BRICS members to seek alternative ways to pursue trade. Russia’s leading banks were banned outright from the SWIFT international payment system back in 2022 as part of the restrictions,” RT said.
Putin added, “The dollar remains the most important tool in global finance but using it as a political weapon undermines trust in the currency.”
But the election of Trump for a second term has compelled the BRICS nations to rethink their de-dollarization plan.
In days after Trump’s election victory, Putin confirmed that BRICS would not abandon the dollar, but that going forward the bloc is “simply refusing to use the dollar as a settlement tool.”
“Our proposals are not aimed against [the] dollar,” he said, adding the BRICS proposals are “simply us rising to the challenge of modern times, in response towards the development of the economy we are thinking.”
Here I go again….. I’m no business woman, but I recall it as tarriffs were placed on imports, to balance foreign government subsidized business, china etc, artificially makes their goods cheaper.
He did it to some degree 4 years ago, I don’t recall the repercussions for the rest of the world, I haven’t followed the news faithfully, in my life.
I’d ask, was life worse for you guys during his 4 years? , and go by that.
I truly believe he’s here to defeat the dark, so that we can really feel light, and the whole world will change into a wonderful place.
♥️💎
I agree with your line of thinking here. There is no shortage of current experts that say tarriffs bad, but that is almost a confirmation of the opposite. Like fact checkers. If I’m honest I’m more upset about T trying to protect the US dollar as I have been hoping for a BRICS takeover, but that is probably just my attachment to certain outcomes. We were better off 4 years ago when it happened so I’ll trust and send love to the best outcomes ARE going to happen. Love to all :).
Tariffs are likely bad for GDP, and most experts only think in terms of GDP.
However GDP has almost nothing to do with the financial well-being of the average person.
An argument can be made that the US is such a rich market to sell into that after perhaps an initial shock, factories will be opened in the US (whether by Americans or foreigners) so that goods can still be sold to Americans with no tariffs added on top. Because if a Chinese company opens a US factory and hires US workers, then it can sell products to Americans without tariffs.
And obviously it’s better for America and Americans if the industry is located in the US and is hiring US workers, rather than if the industry is located in China and is hiring Chinese workers.
This is certainly the main goal behind tarrifs. But the reason why most industry delocalise is mostly taxes. Just look at California.
And again, the average amreican will most likely just see an increase in prices.
Detachment from specific outcomes is already a great outcome IMO, so good call.
Burton, I agree, I’ve read that when the dollar collapses, the world is free of a big devil……
BUT, what if he cuts the f e d s off at the knees?
I’ve been thinking…. the almighty dollar isn’t anyone’s enemy, but the f e d is Everyone’s enemies.
I know I payed 3 X less for everything during his 4 years. I do want overseas (Era) friends and strangers to be okay, too, of course.
If my overseas friends can’t recall any extra hardships from his first term, then I’ll place stock in their recollections, over any “expert “ predictions.
The Chinese government isn’t the only gov funded takeover for a particular business.
Amazon only sold a few books, then the gov gave them an unfair advantage, collapsing small businesses, and lovely Main Streets, all over America.
Now they charge a lot more for their products, since there’s no where else some things are sold, and people are conditioned to buy from them.
Let’s all focus as much as we can on ideal outcomes for all souls involved, and let’s not forget animals, plant, minerals, the whole 9 yards.
♥️💎
Raksha, I hope you and your gf enjoyed that champagne yesterday! My morito was excellent, and yes, just as I’ve read, I was down a half of a pound from the dessert/drink combination! 🥳🥳
🤭
So, the park bullies seem to be arguing wether green leaves are worth more than dry leaves? Well, they certainly don’t BURN nearly as fast!
At the end of the day, you only get to keep the friendships you’ve made… but rest assured there’ll be enough roasted spuds for everyone.
Tariffs largely funded the US government until the 1950s when globalism took over and suddenly they became bad. It’ll be fine.
Hi everybody! USA are not the ones which can manufacture goods and deliver services, all nations can do that, so should USA put tariffs to other nations, I think US would be completely isolated. Silvia S.
Tarrifs are a bad idea. Ultimately, no one will benefit. Sanctionned countries will also issue tarrifs in return, and the cost will only get repercutated on the consumer in the end. It’s a lose-lose situation.
“If goods do not cross the borders, soldiers will”.
(When I post a comment, it’s just me talking, it’s not channeled.)
I’m having mixed feelings about tariffs.
Does my ideal 5D New Earth world have tariffs? No.
Do tariffs reduce the total amount of productivity on Earth? Probably yes.
Do tariffs reduce GDP? Probably yes.
But the policy of the US is supposed to be determined by what the majority of US voters wants. And what most of them care about is: are tariffs good for my personal wallet, yes or not.
And I think that question is harder to answer. Sure, imports become more expensive, but also more jobs are created and the government receives tariff revenue. Tariffs incentivize other countries to open factories in the US and produce goods there, to dodge the tariffs, which means more jobs for Americans.
imo the blunt truth is that unless Americans are okay with accepting second-world wages (and they’re not), then in a world without tariffs most basic industry won’t be located in the US. And it doesn’t sound good for America or Americans in the long run if America is / remains deindustrialized.
I don’t really see how a zero-tariff world can have tons of basic, non-super-high-knowledge industry located in the US, if Americans want to earn substantially higher wages than the Vietnamese (and they do).
“If goods do not cross the borders, soldiers will”. — no one is going to invade the US any time soon.
I doubt tarrifs will make production comes back to the US. Lowering income taxes would. Tarrifs will allow the Treasury to make some bucks, but exporting countries will just boost their prices, so the loss will be on the consumer.
While China will not litteraly invade the US, tariffs have been a damaging factor to international relations and diplomcay in the past.
And Tarrifs have emboldened Russia and China and the Brics to expand even more their alternative. They are less and less inter-dependant with the US as a result. Tariffs may be useful as a tool for intimidation and negociation though. But it doesn’t provide many concrete benefits, same for sanctions.
Also, Trump is using Tarrifs a bit as a “one-size-fits-all magic wand solution”. That is certainly not the remedy to everything at the very least.
I do agree with you that not all tariffs are good.
“I doubt tarrifs will make production comes back to the US.” I think it will to an extent. Although I admit that much of this is guesswork-y.
I agree on reducing income tax — and I think that reducing income tax by a certain degree and implementing tariffs could be a net benefit to the average American, while being budget-neutral.
You could say “don’t put up tariffs and reduce income taxes” and yes, absolutely that would be even better for the average American. But… have you seen the US deficit / debt? They’re not really in a position to do that.
I think the primary reasons for Brics are illegal sanctions and US proxy-wars, with tariffs only being secondary. Although again, I don’t really know. Though even if today all tariffs go to zero, I doubt the BRICS project would stop.
Let’s say for the purposes of the discussion that if the US had never implemented tariffs then BRICS never would have formed. Okay, even if that’s true, that doesn’t mean that tariffs in 2024 are a bad idea — because at present you can’t put the BRICS genie back in the bottle, even if you ditch tariffs.
I can very easily see tariffs being a net negative to humanity at large and to multinationals. But I’m not convinced tariffs are a net negative to average Americans.
Tarrifs are not the primary reason for Brics, but tarrifs, sanctions, erratic and tyrannical economic behaviors (such as confiscating assets from Russian citizens) are clearly sending a message to the non-western world. It’s not stable to count on the US.
About the debt, well, it’s a time bomb anyway, its very purpose is to always inflate. But the DOGE prospect or reducing federal waste is a good start.
Oh and btw, I can understand some tarrifs. But Trump threatening a 100% increase is crazy.
I should have mentionned that I was talking about Trump-sized tarrifs. sorry for my lack of accuracy.