Trump wants mighty dollar to continue

US President-elect Donald Trump escalated tensions with BRICS nations. He threatened to impose 100 percent tariffs if the bloc, consisting of Brazil, Russia, India, China and South Africa, pursues alternatives to the US dollar.

- WILSON SY

"The idea that the BRICS Countries are trying to move away from the dollar while we stand by and watch is OVER," Trump wrote on his social media platform Truth Social.

"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 percent tariffs and should expect to say goodbye to selling into the wonderful US Economy," he added.

US dollar as a weapon Trump's threats come amid growing international efforts to reduce reliance on the US dollar.

The push gained momentum in 2022 after the US-led sanctions on Russia following its invasion of Ukraine exposed the vulnerabilities of dollar-reliant economies. Russian President Vladimir Putin has been particularly vocal, describing the dollar as "being used as a weapon" after the US and its allies froze $300 billion of its assets.

BRICS: A growing economic alliance At the forefront of these de-dollarization efforts is the BRICS, one of the world's largest and influential economic blocs. What began as Goldman Sachs acronym has evolved into a powerful alliance led by China and India - the world's second and fifth largest economies. The group expanded in January 2024 to include Egypt, Ethiopia, Iran and UAE. The bloc's influence grew further at the October 2024 Kazan summit in Russia, where it approved 13 new countries as partner states. These include Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan and Vietnam.