President-elect Donald Trump has threatened to impose tariffs on a bloc of nine countries, known as the BRIC alliance, if they attempt to undermine the global dominance of the U.S. dollar. This alliance consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. Trump has warned that he will impose 100% tariffs and block their goods from entering the U.S. economy if they try to create a new currency to replace the dollar. The U.S. dollar has been the dominant global currency since the end of World War II, representing 58% of the world’s foreign exchange reserves.
The BRIC alliance, which has expanded to include other nations, has expressed a desire to reduce dependence on the U.S. dollar. Some members have started using the Chinese Yuan and Russian ruble in their trading, and there have been discussions of creating a common currency within the alliance. Trump’s latest tariff threat is part of a broader foreign strategy aimed at U.S. foes and allies, which also includes possible tariffs on imports from Mexico, Canada, and China. The president-elect has stated that the BRIC alliance will not replace the U.S. dollar in global trade, and any country attempting to do so will face consequences. This move highlights Trump’s focus on protecting America’s economic interests and his willingness to use tariffs as a tool in foreign relations.
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