KUALA LUMPUR – US President-elect Donald Trump has threatened to impose 100% tariffs on countries within the BRICS bloc if they commit to creating a new currency for international trade.
His warning is directed at the China- and Russia-backed group of emerging economies, which he claims aims to undermine the US dollar.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump posted social media on Saturday afternoon, as quoted by CNN.
“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.”
“They can go find another “sucker!” 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.”
BRICS, originally comprising Brazil, Russia, India, China, and South Africa, has expanded this year with the formal inclusion of Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt—the first expansion of the group in over a decade.
In February, South African Foreign Minister Naledi Pandor revealed that 34 countries had expressed interest in joining.
In 2023, Brazil’s president, Luiz Inácio Lula da Silva, proposed creating a common currency for South America to reduce reliance on the US dollar. However, the prospect of a new currency within BRICS is considered unlikely, given the alliance’s internal economic and geopolitical disparities.
The use of BRICS currencies and banking networks outside the US dollar system could offer countries like Russia, China, and Iran a way to bypass Western sanctions, but challenges remain.
The growing bloc presents an opportunity for China to strengthen its global influence in opposition to the United States, while also benefiting Russia, which has faced economic and diplomatic isolation following its invasion of Ukraine. This year, Russia took on the rotating chairmanship of BRICS.
At an October summit, Russian President Vladimir Putin and Chinese President Xi Jinping emphasised that the West stood isolated, while a “global majority” of nations backed their challenge to American leadership.
Trump’s recent tariff threat follows his announcement that he would impose significant increases in tariffs on imports from Mexico, Canada, and China from his first day in office, citing concerns over illegal immigration and the flow of crime and drugs.
Since then, Trump has had differing accounts of a conversation with Mexican President Claudia Sheinbaum, while Canadian Prime Minister Justin Trudeau visited Trump at his Mar-a-Lago estate, calling their meeting “excellent” and “very productive.”
In late October, Malaysia officially became a partner country in the BRICS alliance, alongside Thailand and Indonesia. This follows Prime Minister Datuk Seri Anwar Ibrahim’s confirmation in July that Malaysia had applied for full membership.
Initially known as “BRIC” (Brazil, Russia, India, China), the term was first coined in 2001 by former Goldman Sachs economist Jim O’Neill, who predicted these countries would challenge the global dominance of Western economies.
The alliance was formed in 2006, and when South Africa joined in 2010, the acronym changed to BRICS.
In 2023, BRICS expanded further with the addition of Iran, Egypt, Ethiopia, and the UAE. The bloc now represents 45% of the world’s population and controls $26.6 trillion (RM115.7 trillion) of global wealth—28% of the global economy.
Malaysia’s pursuit of BRICS membership is seen as part of Anwar’s broader strategy to maintain the nation’s economic and geopolitical independence.
In June, Anwar told Shanghai-based news outlet Guancha that BRICS membership would be of “strategic importance,” given Malaysia’s position along the crucial Straits of Malacca, a key shipping route that facilitates global crude oil transport.
In 2023, the trade value between the United States and Malaysia saw Malaysia exporting goods worth $35billion (RM160 billion) to the US. – December 1, 2024