US President Donald Trump has once again threatened Brics nations, including India, of imposing 100% tariffs on trade in case the bloc moves forward with plans to replace the US dollar.
In his speech after assuming office as the 47th US president on Monday, Trump made it clear that any attempt by Brics nations to move away from the dollar would not be tolerated.
“If the Brics nations want to do that, that’s okay, but we’re going to put at least a 100% tariff on the business they do with the United States,” Trump said, emphasising that any such actions would result in severe penalties.
He further asserted that the countries would have to face hefty tariffs even if they even considered reducing the dollar’s role in global trade.
Brics, an intergovernmental organisation consisting of ten countries: Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, has been at the centre of global economic discussions.
Trump had warned the group previously in December too, against attempts to replace the dollar with a new currency.
“We require a commitment from these countries that they will neither create a new Brics currency, nor back any other currency to replace the mighty US dollar or, they will face 100 per cent tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump said at the time.
Indian external affairs minister S Jaishankar further affirmed India’s stance regarding the replacement of dollar, stating that the country has never supported de-dollarisation and there were no plans for a Brics currency.
On a different note, Trump also addressed questions on immigration. He expressed his support for legal immigration, stating that the country would need more workers to support manufacturing growth due to his tariff policies.
“I’m fine with legal immigration. I like it. We need people, and I’m absolutely fine with it. We want to have it,” he said.
