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Trump Issues 100% Tariff Warning To BRICS Nations Over De-dollarisation Efforts

The BRICS group, formed in 2009, consists of Brazil, Russia, India, China, and South Africa, as well as recent additions such as Iran, Egypt, Ethiopia, and the United Arab Emirates.

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Trump Issues 100% Tariff Warning To BRICS Nations Over De-dollarisation Efforts

US President Donald Trump reiterated his warning to BRICS nations, including India, on January 20, stating that they would face 100 per cent tariffs if they continue with their efforts to de-dollarise global trade.

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Addressing a press meeting at the Oval Office following his inauguration, Trump emphasized that "as a BRICS nation... they'll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately." This comment referred to the ongoing efforts by certain BRICS members, particularly Russia and China, to reduce the global use of the US dollar in trade.

The BRICS group, formed in 2009, consists of Brazil, Russia, India, China, and South Africa, as well as recent additions such as Iran, Egypt, Ethiopia, and the United Arab Emirates. Notably, the US is not part of the BRICS alliance. Over recent years, Russia and China have led the push to explore alternatives to the US dollar, including the idea of a BRICS currency. India, however, has not yet participated in these efforts.

Trump also made it clear that he would impose tariffs on any business dealings between BRICS nations and the United States, declaring, "If the BRICS nations want to do that, that's OK, but we're going to put at least a 100 per cent tariff on the business they do with the United States... It's not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, No, we have them over a barrel. And there's no way they're going to be able to do that."

During the 15th BRICS summit in 2023, Russian President Vladimir Putin advocated for de-dollarisation, urging member countries to expand settlements in national currencies and boost cooperation between banks.

Meanwhile, former Reserve Bank of India (RBI) Governor Shaktikanta Das stated last month that India has not taken any steps toward de-dollarisation, noting that the country is only working to "de-risk domestic trade from geo-political upheavals." Das clarified that de-dollarisation was not a priority for India at this time.

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