Donald Trump’s recent declaration to impose 100% tariffs on BRICS+ countries attempting to replace the US dollar as the global reserve currency reveals a strategy that could backfire on the United States. His belief that aggressive tariffs will resurrect the ailing US economy overlooks the shifting dynamics of global economic power and risks isolating the US from significant international markets.
Trump’s ultimatum, posted on November 30, insists that BRICS+ nations must commit to not creating or supporting a new currency to replace the dollar, or face severe tariffs and exclusion from the US economy. However, this approach ignores the reality that BRICS+ has already surpassed the G7 in terms of GDP when measured by Purchasing Power Parity (PPP), accounting for 35% of global GDP compared to the G7’s 30%. Furthermore, BRICS+ nations represent 45.3% of the world’s population, dwarfing the G7’s 10%.
By threatening major economies like China, India, and newly added BRICS members such as Saudi Arabia and the United Arab Emirates, the US risks damaging trade relationships with countries that are increasingly pivotal to global economic growth. Imposing steep tariffs could lead to retaliation, decreased access to important markets, and further incentivize these nations to develop alternative financial systems that bypass the US dollar.
The move also seems to disregard the fact that efforts toward de-dollarization are, in part, a response to previous US policies. The use of the dollar as a tool for sanctions and geopolitical leverage has pushed countries like Russia and China to seek alternatives. Russian President Vladimir Putin has criticized the “weaponizing” of the dollar, stating that such actions force nations to find other options for international trade and finance.
Moreover, the global trend towards multipolarity means that no single nation can unilaterally dictate terms without considering the broader implications. The US’s traditional allies may not fully support aggressive tariffs that could disrupt global supply chains and economic stability.
Trump’s strategy also underestimates the technological advancements and economic resilience of BRICS+ nations. With significant investments in areas like quantum computing, artificial intelligence, and renewable energy, these countries are increasingly capable of sustaining economic growth independent of US influence.
Instead of resorting to punitive measures, the US might benefit from engaging in diplomatic dialogue and cooperation with BRICS+ nations. By acknowledging the evolving global economic landscape, the US can work towards mutually beneficial agreements that promote stability and growth.
Ultimately, Trump’s proposed tariffs against BRICS+ countries aiming for de-dollarization are likely to be counterproductive. Such a strategy could accelerate the very outcome he seeks to prevent—the decline of the dollar’s dominance—and harm the US economy in the process. A more nuanced approach that recognizes the complexities of global economics and fosters international cooperation would better serve US interests.
By Chimazuru Nnadi-Oforgu
Duruebube Uzii na Abosi
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