America’s newly elected President Donald Trump is in the news these days for his threats. Especially regarding tariff threats. A few days ago, Trump had told through his social media that as soon as he takes office, he will increase tariffs on China, Canada and Mexico by an additional 25 percent. But, now he has given this tariff threat to BRICS countries, which also includes India.

Let us tell you, Donald Trump has warned BRICS countries that if they bring their own currency as an alternative to the dollar, America will impose 100 percent tariff on them. That means 100% tariff will be imposed on all goods imported from these countries. Now the question arises that what is the reason behind Donald Trump’s threat. Let us tell you in this news that if BRICS countries bring their own currency as an alternative to the dollar, then how much loss will it cause to America.

What did Trump say?

America’s newly elected President Donald Trump wrote on his social media platform We need a commitment from the BRICS countries that they will neither create a new BRICS currency nor support any other currency to replace the US dollar. “If they do, they will face 100 percent tariffs.”

He further wrote, “If BRICS countries do this then they will not be able to sell their products in the brilliant American economy. They can look for some other place. There is no possibility that BRICS will be able to replace the US dollar in international trade and any country doing so should say goodbye to America.”

How much loss will America suffer from the currency of BRICS countries?

Due to reduced demand for the dollar, its value may decline, which may increase instability in the US financial markets. Apart from this, the weakness of the dollar will make imports expensive, which will increase America’s trade deficit. At the same time, America, which frequently uses the dollar to impose economic sanctions, if the hold of the dollar weakens, then the effect of the American sanctions will also reduce.

Apart from this, according to a BBC report, business transactions, international payments, loans, imports and exports around the world are done in US dollars only. If we talk about global currency reserves, the share of dollar in it is 59 percent. Whereas, 64 percent of the world’s total debt is transacted in dollars only. At the same time, dollar also has a major share in international transactions, about 58 percent. The dollar also dominates foreign payments. Its share here is 88 percent. In such a situation, if BRICS countries bring their own currency as an alternative to the dollar, then its direct impact will be visible on America and its currency dollar. This is the reason why America is scared of this initiative of BRICS countries.

BRICS countries have their own currency

Donald Trump is concerned about the currency of the BRICS countries as an alternative to the dollar. This was discussed in the BRICS conference held in South Africa in August 2023. In this conference, a proposal was made to create a common currency for mutual trade and investment between BRICS countries. This year too, in the summit of BRICS countries held in October, Russia had lobbied strongly for this proposal.

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