American president pointed out that the US will not be ‘arms crossed’ as long as there is an attempt to weaken the dollar, referring to the possible creation of an emerging bloc’s coin
United States President Donald Trump reaffirmed his intention to impose 100% tariffs on the BRICS countries if they advance with the creation of their own currency to replace the dollar in their negotiations. The threat, which had already been done last year, was reiterated in a social network publication. Trump pointed out that the United States will not go with his arms crossed while the Brics try to move away from the dollar. He required a commitment of the block, which he considers hostile, so that they do not create a new currency or support any other that replaces the American border.
The discussion about the creation of their own coin by the BRICS is not new. The block, which includes Brazil, Russia, India, China and South Africa, as well as new members such as Iran, Saudi Arabia, Egypt, Ethiopia and the United Arab Emirates, has been debating this possibility for some time. The idea is to facilitate negotiations, making them cheaper and avoiding conversion to the dollar. This strategy also favors Russia, which faces sanctions from the United States. The Brazilian president, Luiz Inacio Lula da Silva (PT), has defended this approach, arguing that trade between the BRICS would be easier and more economical.
In response to the possibility of American tariffs, Lula stated that Brazil will adopt the reciprocity policy, imposing taxes on US products if Brazilian products are taxed. This posture can intensify tensions between the Block of Emerging Nations and the United States, as well as affect business relations in South America. The local currency negotiation strategy is already practiced within the block, but the creation of a single currency aims challenge the domain of the dollar in international trade. Trump’s reaction reflects the United States’s concern with this potential change in the global economic scenario.
*With information from Luciana Verdolin
