By dubailife 
Trump Warns BRICS Nations of 100% Tariffs Over New Currency Plans
President-elect Donald Trump announced that BRICS nations—an economic bloc backed by China and Russia—must commit to not creating a new currency or face 100% tariffs on exports to the U.S. during his administration.
“The idea that BRICS countries are moving away from the U.S. dollar while we stand by is OVER. We require a firm commitment that they will not create or back a new BRICS currency to replace the mighty U.S. dollar. If they refuse, they can expect 100% tariffs and say goodbye to selling into the wonderful U.S. economy,” Trump stated on his Truth Social platform.
BRICS Expansion and Currency Tensions
Since 2011, BRICS has comprised Brazil, Russia, India, China, and South Africa. In 2023, the group expanded, welcoming Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt, marking its first expansion in over a decade. 34 countries have expressed interest in joining the bloc, according to South African Foreign Minister Naledi Pandor.
Brazilian President Luiz Inácio Lula da Silva proposed creating a common currency for South America in 2023, aiming to reduce dependence on the U.S. dollar. Meanwhile, BRICS countries, including Russia, China, and Iran, are exploring alternative currencies and banking systems to bypass Western sanctions. However, experts believe a unified BRICS currency is unlikely due to economic and geopolitical differences among the member nations.
China and Russia’s Strategic Positioning
BRICS’ expansion strengthens China’s geopolitical influence as it forges alliances to challenge U.S. global leadership. Similarly, the bloc offers a vital platform for Russia, which faces economic isolation following its 2022 invasion of Ukraine. This year, Russia assumed the rotating chairmanship of BRICS, further solidifying its influence within the group.
In a BRICS summit held in October, Russian President Vladimir Putin and Chinese President Xi Jinping emphasized that the West is increasingly isolated, positioning BRICS as a “global majority” poised to challenge U.S. dominance.
Broader Tariff Threats from Trump
Trump’s latest economic stance comes days after announcing plans for significant tariff hikes on imports from Mexico, Canada, and China as part of his strategy to curb illegal immigration and cross-border crime.
Following the announcement, Trump spoke with Mexican President Claudia Sheinbaum, though their accounts of the conversation vary. Meanwhile, Canadian Prime Minister Justin Trudeau met with Trump at Mar-a-Lago in Florida. Trudeau described the meeting as “an excellent conversation,” while Trump called it “a very productive meeting.”
Impact on Dubai and the UAE
Given Dubai’s role as a global trade hub and the UAE’s recent BRICS membership, these developments could affect its trade dynamics with the U.S. The UAE’s inclusion in BRICS aligns with its strategy to diversify its international alliances and strengthen economic partnerships with emerging markets. However, Trump’s tariff threats could pose challenges for Dubai’s exporters and investors looking to engage with U.S. markets under the new administration.
Source : CNN