On Thursday, President Donald Trump cautioned BRICS member countries against replacing the U.S. dollar as the global reserve currency, reiterating a threat of 100% tariffs that he had issued after winning the US elections in November.
Trump stated that while these nations may be acting in their own economic interest, the US cannot afford to continue facing unfair trade conditions. The President reiterated his “America First” approach, asserting that the United States would develop a more equitable trade system that would generate wealth for the American economy, ultimately ensuring the country’s prosperity. He promised that such a system would be established “very soon.”
“We will not allow our citizens to be taxed while making other countries wealthy,” Trump declared. “Instead, we will make our citizens wealthier by taxing other nations who have long taken advantage of the US.”
In December 2024, Russia had said that any attempt to force BRICS countries to use the dollar, would only strengthen the demand for national currencies.
A study by the Atlantic Council’s GeoEconomics Center in 2024 showed that there remained global reliance on the US dollar as a primary reserve currency. It also proved that the euro and attempts to form alternate currencies had been unsuccessful in unseating the US dollar.
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