Experts are sounding the alarm over former President Donald Trump’s threat to impose 100% tariffs on BRICS nations that move away from the U.S. dollar in international trade. They warn that such a move could backfire, potentially accelerating a global shift away from the dollar.
The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa, along with four new members—has been discussing alternatives to the U.S. dollar for years. The group’s aim is to reduce dependency on the dollar for international transactions, a move that could reshape global economic dynamics.
“Forcing other nations to use the dollar through tariffs could undermine trust and push them to expedite their search for alternatives,” said an international trade expert. The concern is that aggressive policies might hasten de-dollarization efforts rather than deter them.
The U.S. dollar has long been the world’s primary reserve currency, giving the United States significant influence over global trade. However, shifts in geopolitical alliances and economic strategies are challenging this status quo.
BRICS nations are exploring the creation of a new currency or increasing the use of their local currencies in trade. Such developments could weaken the dollar’s dominance and alter the balance of economic power.
As the global economy navigates these potential changes, experts emphasize the importance of diplomatic engagement over unilateral threats. Collaborative solutions may prove more effective in maintaining the dollar’s global position.
Reference(s):
cgtn.com
