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US President-elect Donald Trump on Saturday threatened the BRICS nations, including India, with 100 per cent tariffs and called for a clear commitment from these countries to refrain from creating a new currency or supporting any other currency to replace the US dollar.
Taking to the social media platform Truth Social, Trump stated that the idea of BRICS nations trying to move away from the dollar while the US stood by and watched was "over." He further warned that any country attempting to replace the USD would also lose access to the US market, adding that such countries would need to find "another sucker" if they pursued such actions. "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 per cent Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy. They can go find another "sucker!" Trump said. "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," he added. Trump's statement came after Russian President Vladimir Putin proposed creating a new investment platform for BRICS countries during the BRICS summit in Kazan in October, as reported by Reuters. This development could signal a move toward reduced dependence on the US dollar. "We propose to set up a new investment platform of BRICS," Putin said, addressing the plenary session of the BRICS Summit. "We need to jointly promote the low-emission model of the economy. New BRICS global investment platform to provide financial resources for all countries of the Global South," the Russian President added, as quoted by Reuters. As of now, BRICS has two financial platforms: the New Development Bank, headquartered in Shanghai, and the Contingent Reserve Arrangement. The New Development Bank mobilises resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries to supplement existing efforts of multilateral and regional financial institutions for global growth and development. The Contingency Reserve Arrangement is a short-term liquidity support for the BRICS members through currency swaps to help mitigate the balance of payment crisis in case such a situation arises and thus further strengthens financial stability. The BRICS group consists of five core members--Brazil, Russia, India, China, and South Africa--and in 2024 welcomed Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia as full members. (ANI)
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