In February, the US President had already spoken in rates of up to 100% to the member countries of the bloc
The president threatened to put an additional 10% for the countries of that adopt economic policies against. Trump’s speech is nothing new. In February, the US President had already spoken in rates of up to 100% to the bloc member countries.
Although BRICS is not an economic bloc, alignment and cooperation between nations brings concerns to the US government. Basically, Trump’s discomfort is with the possibility of countries adopting another currency instead of the dollar in financial-commercial transactions among member countries.
The concern is also nothing new. Even before being elected, Trump said that if the US lost the dollar as the main reserve of global value, the American economic strength is very shaken.
In fact, the use of the dollar as the global value reserve brings a huge advantage for the US to finance its spending (military, tax subsidies and social security), without the need for savings of government and US citizens.
However, threatening countries with protectionist tariffs can generate exactly the opposite effect to the desired: loss of confidence in the US, and the acceleration of the search for another currency for economic transactions.
It is true that today there are no alternatives to the dollar, but “the cat has risen on the roof.”
*This text does not necessarily reflect the opinion of the young Pan.
