Global Trade at Risk: Trump Eyes 100% Tariff on BRICS Countries

President-elect Donald Trump indicated that he would necessitate nations belonging to BRICS—a coalition of developing economies backed by China and Russia—to commit to refraining from establishing a new currency. Nations failing to adhere to this requirement would face tariffs amounting to 100% during his administration.

"We're tired of watching as the BRICS nations try to move away from the Dollar. We need assurance from these countries that they will not develop a new BRICS currency or back any other currency to take on the great U.S. Dollar. If they don't, they can expect to have 100% tariffs and must say goodbye to selling in our incredible U.S. Economy," Trump wrote on Truth Social Saturday afternoon.\

Kash Patel speaks to supporters during a campaign event for Republican candidates at Whiskey Roads Restaurant & Bar on July 31, 2022, in Tucson, Arizona.

Since its creation in 2011, BRICS has included Brazil, Russia, India, China, and South Africa. Earlier this year, the group made its first expansion in over ten years with the official acceptance of Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt as new members. In February, South African Foreign Minister Naledi Pandor unveiled that thirty-four countries are showing interest in membership within this powerful alliance.

In 2023, the president of Brazil, Luiz Inácio Lula da Silva has advocated for a single South American currency to replace the US dollar.

Adoting BRICS currencies and banking systems out of the US dollar-dominated framework could help member nations like Russia, China, and Iran evade western sanctions. However, it is unlikely that there would be a new currency introduced considering the divergent economic and geopolitical views within the alliance.

This bloc is very important to an expanding China working to strengthen ties with key players in a move to counter U.S. global dominance. It also holds huge gains for Russia, which faced economic and diplomatic isolation by Western nations in the wake of its military invasion of Ukraine in 2022. This year, Russia has taken up the rotating leadership of the bloc.

At a BRICS summit in October, Russian President Vladimir Putin and Chinese leader Xi Jinping both sought to hammer the narrative of the West's mounting isolation while a "global majority" of nations rallies behind their efforts to contest American hegemony.

Trump's latest economic ultimatum came just after his pledge to enact massive tariff increases on imports from Mexico, Canada, and China starting on Day One of his presidency. He said the actions would be a response to illegal immigration and the burden of "crime and drugs" coming across the border.

Since the announcement, Trump had his first call with Mexican President Claudia Sheinbaum, though their descriptions of the call were starkly different. In a related development, Canadian Prime Minister Justin Trudeau visited Trump's Mar-a-Lago resort in Florida, where he described their Friday dinner as an "excellent conversation" while Trump labeled it a "very productive meeting."