TLDR
- Former President Trump escalates his tariff threat against BRICS from 100% to 150%
- Trump claims BRICS alliance disbanded after his warnings about dollar alternatives
- BRICS members, now 10 nations strong, continue exploring local currency trading
- Putin indicates no immediate plans to abandon dollar despite ongoing discussions
- Trump’s claims of BRICS’ breakup contrast with the group’s recent expansion
Donald Trump has raised the stakes in his confrontation with BRICS nations, increasing his threatened tariff from 100% to 150% on member states that pursue alternatives to the U.S. dollar. The former president made these remarks during a February 21 address to the Republican Governors Association.
The BRICS alliance, which started with five nations in 2009, has grown to include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia. This expansion contradicts Trump’s claims about the group’s dissolution.
Trump’s warning came with specific conditions. He stated that any BRICS nation merely mentioning “the destruction of the dollar” would face severe trade consequences, including a complete halt of trade relations with the United States.
The former president’s statements included direct quotes about his policy: “We don’t want your goods, we don’t want to partake.” This marks an escalation from his earlier position of a 100% tariff threat, which he had mentioned in previous speeches.
During his address, Trump criticized former President Joe Biden’s handling of the BRICS currency issue, suggesting Biden viewed it as an insurmountable challenge. Trump contrasted this with his own approach, emphasizing immediate and strong action.
The threat stems from BRICS’ ongoing discussions about reducing dependence on the U.S. dollar in international trade. Member nations have explored various mechanisms for conducting transactions in local currencies.
Trump claimed victory in his approach, stating, “We haven’t heard from the BRICS states lately.” He interpreted this perceived silence as evidence of the effectiveness of his threats.
Current State of BRICS
Russian President Vladimir Putin has offered clarification on BRICS’ position, stating that while the group explores local currency trading options, there are no immediate plans to abandon the U.S. dollar system entirely.
Individual BRICS members maintain different positions on the currency issue. Iran continues to support the concept of a unified currency alternative, while other members focus on incremental changes to their trading systems.
The alliance’s recent expansion to ten members suggests ongoing vitality despite Trump’s claims of its dissolution. New members joined despite awareness of potential U.S. trade restrictions.
BRICS remains the only major international organization without U.S. membership, giving it a unique position in global economic discussions. This independence allows member states to explore financial alternatives without direct U.S. involvement.
Trump’s assertion that BRICS members are “afraid to talk about it now” contrasts with continued public discussions among member states about financial cooperation and trade mechanisms.
The former president’s claims about breaking up BRICS through tariff threats have not been officially acknowledged by any member nation. The group continues to hold regular meetings and policy discussions.
Recent developments show BRICS nations actively participating in international trade discussions, maintaining their organizational structure while exploring various financial cooperation methods.
The timing of Trump’s increased tariff threat coincides with ongoing global discussions about the future of international trade settlements and currency systems.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
