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President Donald Trump has reiterated his threat to impose 100% tariffs on BRICS nations if they attempt to replace the U.S. dollar as a reserve currency.
He demands that these countries commit to not creating a new BRICS currency or endorsing any other currency to supplant the U.S. dollar.
This move is part of his strategy to preserve the U.S. dollar’s global economic dominance.
A BRICS currency refers to a proposed common currency for Brazil, Russia, India, China, and South Africa.
The idea is to reduce reliance on the U.S. dollar for international trade and financial transactions among these countries.
It would allow these nations to assert their economic independence, facilitate smoother trade, enhance financial stability, and increase geopolitical influence by providing an alternative to the U.S. dollar.
Trump, however, believes he has the right to impose tariffs on BRICS nations to protect the dominance of the U.S. dollar in global trade and finance.
By threatening tariffs, Trump aims to discourage BRICS nations from creating a new currency that could challenge the dollar’s supremacy.
Critics argue that using tariffs as leverage can disrupt trade relationships and create economic uncertainty, leading to job losses, reduced investment, and slower economic growth in affected countries.
BRICS nations might respond with their own tariffs on U.S. goods, leading to a trade war.
The imposition of tariffs on BRICS nations could also have indirect effects on countries like Nigeria.
For Nigerians, it could lead to inflation and higher prices for imported goods, exacerbating inflationary pressures.
This would result in increased costs for everyday items and reduce the purchasing power of Nigerian citizens.
Nigeria’s trade relationship with the U.S. could also be affected by the broader trade tensions.
While Nigeria is not directly targeted by the tariffs, the overall disruption in global trade can impact Nigeria’s exports and imports.
Overall, critics argue that the imposition of tariffs can create economic challenges and uncertainties that can negatively impact the world economy, not just in the United States, but also in BRICS nations, affecting the lives of everyday citizens in and outside the United States.
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