The president of the United States of America, Donald Trump, threatens to compel commitments to the BRICS nations that they should not engage in plans to develop a new currency to compete with the US dollars. Trump underscored the same by insisting on his Truth Social platform to apply 100% tariffs on countries that try to pull out from the dollar.
“While some of the world’s largest economies known as BRICS seek to shift away from the dollar and we are doing nothing about it is over,” Trump vowed. He demanded that these nations not form or support any currency specifically for BRICS or for any other purpose that would see the dollar overthrown. Noncompliance, he said, would lead to stiff economic repercussions, including the denial of business in the US market.
Trump’s comments came at a time when he is set to start his term as president in January, indicating readiness by his government to defend the dollar’s status as the world reserve currency. Before entering office, Trump used his campaign speeches to warn any country that wanted to deny the dollar its reserved status that he would make it unbearable for them by imposing measures like tariffs, export controls and even accusing them of currency manipulation.
From inside sources, Trump and his top economic team have discussed the use of penalties to countries – friends and foes – who use partisan currencies in trade. Such potential measures speak volumes of the incoming administration’s immovable stand as far as the dollarisation of the global market is concerned.
However, Trump and his campaign have received considerable criticism from rhetoric experts. Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, said that the threats are due to ignorance of trade and financial integration. Pettis claimed that such aggressive behaviors may likely to enhance the tendency of countries to switch away from the dollar.
With opinions polarizing, what Trump stands for as his policy direction will have massive impacts on America in global economy.
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