Johannesburg – United States President-elect Donald Trump has issued a stark warning to South Africa and its BRICS partners, Brazil, Russia, India, and China, threatening a 100% tariff on their goods should they pursue efforts to diminish the US dollar's global dominance.
This strong statement, posted on Trump's Truth Social network on Saturday, comes as the incoming president prepares to assume office in January and underscores his long-held commitment to maintaining the dollar's position as the world's reserve currency.
Trump's message was unequivocal: “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” he declared.
He went on to state, “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
This latest threat builds upon Trump's previous pronouncements during his campaign trail, where he pledged to make it financially disadvantageous for nations to move away from the US dollar, employing tariffs as a primary enforcement tool. The timing of Saturday's statement is significant, given Trump's imminent return to power and the ongoing discussions within his administration regarding strategies to counter de-dollarisation efforts.
Sources familiar with the matter reveal that Trump and his economic advisors are exploring various punitive measures against both allies and adversaries who engage in bilateral trade using currencies other than the dollar. These potential measures include export controls, accusations of currency manipulation, and additional trade levies.
Trump's stance on this issue is longstanding and unwavering. In a March interview with CNBC, he explicitly stated that he “would not allow countries to go off the dollar” because it would represent “a hit to our country.” This unwavering commitment to the dollar's global supremacy underpins his current aggressive stance towards the BRICS nations.
The BRICS nations themselves addressed the issue of de-dollarisation at their 2023 summit, reflecting a growing global trend towards reducing reliance on the US dollar. This movement gained significant momentum in 2022 following the US-led imposition of economic sanctions on Russia. Trump's economic advisors have specifically targeted the BRICS' efforts as a key concern.
Trump's Saturday post further emphasised his determination to prevent any challenge to the dollar's dominance: “There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America,” he asserted.
This latest threat adds to the already heightened global economic uncertainty surrounding Trump's return to office. He has previously threatened additional 10% tariffs on goods from China and 25% tariffs on all products from Mexico and Canada, conditional upon insufficient action to curb illegal drug trafficking and undocumented migration across the US border.
These threats have already prompted international reactions. Canadian Prime Minister Justin Trudeau recently met with Trump to discuss trade and border issues, aiming to de-escalate tensions between the two countries following Trump's tariff threats. The meeting highlights the significant international pressure Trump's pronouncements are generating.
The potential impact on South Africa and other BRICS nations remains to be seen, but the president-elect's firm stance leaves little room for doubt regarding his determination to maintain the US dollar's global dominance.
