As Nigeria and other countries are hoping to be part of the global trade bloc – the BRICS nations, US President Donald Trump on Thursday proclaimed the organization as “dead”.
Trump argued that the bloc was created for a “bad purpose” and that most people don’t want it.
He then issued a stern warning, threatening once again to impose 100% tariffs on trade with the US if they attempt to replace the US dollar with an alternative currency.
BRICS’ De-Dollarization Efforts
Trump’s warning comes after BRICS nations, particularly Russia and China, have been pushing for de-dollarization.
Russian President Vladimir Putin called for expanded settlements in national currencies and enhanced cooperation between banks during the 15th BRICS Summit in 2023.
READ ALSO | Nigeria Along 12 Other Nations Joins BRICS Bloc as Partner Countries
BRICS foreign ministers also advocated for the use of local currencies in bilateral and multilateral trade during a meeting in June 2024.
Trump emphasized that the US will not trade with BRICS nations if they “play games” with the dollar. He also rejected the idea that the US is vulnerable, saying the US holds leverage over BRICS countries.
On his Truth Social handle he wrote, ““The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile 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. They can go find another sucker Nation. There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!”“.
With Russia hamstrung by the war with Ukraine and the lifeline thrown to Vladimir Putin by Trump trying to end in war in Russia’s favour, it is easy to see the geopolitical leverage Trump is referring to.
Without Russia, is B_ICS “dead”?
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