SAEDNEWS: US President Donald Trump has reiterated his threat to impose a 10% tariff on BRICS nations, claiming that the economic bloc would quickly dissolve if it were to form in a meaningful way.
Speaking at a White House event on Friday, where he signed a cryptocurrency legislation into law, Trump accused BCRICS nations of attempting to undermine the US dollar’s global dominance.
“When I heard about this group from BRICS, six countries, basically, I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly,” Trump said without naming the countries. “We can never let anyone play games with us.”
He also stated that he was committed to preserving the dollar’s global status as a reserve currency and pledged never to allow the creation of a central bank digital currency in the US.
Trump announced the new tariff on July 6 and said it would apply to any country that aligns itself with what he called the “anti-American policies” of the BRICS group.
“BRICS, they wanted to try and take over the dollar, the dominance of the dollar and the standard of the dollar,” he said.
With forums such as the G7 and G20 groups of major economies encumbered by divisions and the disruptive “America First” approach of Trump, the BRICS group is presenting itself as a haven for multilateral diplomacy.
Since issuing the threat, Trump has repeatedly claimed without evidence that the group was set up to hurt the US and the dollar’s role as the world’s reserve currency.
Brazil in February rejected any plans to push for a common currency during its presidency this year, but the group is advancing a cross-border payment program known as BRICS Pay that would facilitate financial transactions and trade in local currencies.
The BRICS group expanded last year beyond Brazil, Russia, India, China, and South Africa to include members such as Indonesia and Iran. Leaders at the group’s summit in Brazil criticized the military and trade policies of the US.
Citing Brazil’s “unfair” trade practices, Trump has singled out the South American nation for additional penalties, including a 50 percent tariff on imports, which starts in August.
