[Source: BBC]
US President-elect Donald Trump has threatened to impose 100% tariffs on a bloc of nine nations if they were to create a rival currency to the US dollar.
Major world powers China and Russia are part of the Brics alliance, along with Brazil, India, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
During the US election, Trump campaigned on implementing widespread tariffs. He has escalated threats of steep levies in recent days.
This latest message from Trump, who will take office next year on 20 January, was aimed at the Brics, a bloc of mostly emerging economies.
Leading politicians in Brazil and Russia have suggested creating a Brics currency to reduce the US dollar’s dominance in global trade. But internal disagreement has slowed any progress.
But some Trump allies have suggested his recent announcements have been negotiation tactics, meant as more of an opening bid than a promise.
Asked about the president-elect’s proposed use of tariffs, Republican Senator Ted Cruz responded by noting the “importance of leverage”.
“You look at the threat of tariffs against Mexico and Canada, immediately has produced action,” the Texan said on CBS News’ Face the Nation on Sunday.
On Friday, Canadian Prime Minister Justin Trudeau made an unscheduled trip to Trump’s Florida estate Mar-a-Lago, seemingly to head off a potential 25% tariff on Canadian goods heading south.
Trump’s pick for Treasury Secretary, Scott Bessent, has previously suggested that the president-elect’s threats to impose major tariff hikes were part of his negotiating strategy.
