Battle for the US dollar

Trump now threatens BRICS countries with high tariffs

Donald Trump's threat is also directed at the countries of Xi Jinping and Luiz Inacio Lula da Silva.(Bild: APA/AFP/EVARISTO SA)

Almost not a day goes by without the US President-elect threatening some country with his favorite weapon, the tariff club. Now it is aimed at countries in the BRICS alliance and their efforts to break the dominance of the US dollar.

"We demand a commitment that they will not create a new BRICS currency or support another currency to replace the mighty US dollar," Trump wrote on his online platform Truth Social on Saturday. Otherwise, he would impose "100 percent tariffs" on goods from these countries.

The acronym BRICS stands for the initials of the first five members Brazil, Russia, India, China and South Africa. Iran, Egypt, Ethiopia and the United Arab Emirates were added at the beginning of this year. This is a group of emerging industrial nations. Other countries are also seeking membership.

Kremlin leader Vladimir Putin wants to position the BRICS states "against the West" and the US-led world order.(Bild: APA/AFP/Alexander NEMENOV)

The heads of state and government of the alliance met for a summit in the Russian city of Kazan at the end of October. Kremlin leader Vladimir Putin swore the participants to greater cooperation, particularly in the financial sector.

Kremlin spokesman Dmitry Peskov denied that Moscow's aim was to fight the dominance of the US dollar on the world markets with the help of BRICS. However, Putin had previously repeatedly criticized the dominance of the US currency and announced his intention to establish an independent payment and clearing system within the BRICS.

To date, the US currency has been by far the most important in global payment transactions. By introducing a different, non-Western currency, Moscow hopes to be less affected by the sanctions imposed by the West due to the war in Ukraine.