Donald Trump has issued a sharp warning to nations supporting BRICS Pay, a blockchain-based payment system designed to reduce reliance on the U.S. dollar. In a recent post, Trump proposed 100% tariffs on countries moving towards dollar alternatives, declaring, “Any country that tries should wave goodbye to America.”
The target of Trump’s remarks is BRICS, a coalition led by China and Russia, now comprising 10 nations, including recent additions like Iran, Egypt, and the UAE. BRICS Pay, launched in October, aims to facilitate cross-border payments using national currencies, challenging the dollar-dominated Society for Worldwide Interbank Financial Telecommunication (SWIFT) system.
A New Front in Global Trade Relations
The proposal has raised fears of a far-reaching trade war, with Trump’s transition team expected to negotiate with global leaders. A Kremlin spokesperson dismissed the threats, stating that reliance on the dollar is already waning.
BRICS Pay’s development underscores efforts by member nations to create an alternative financial system. By leveraging blockchain and QR code technologies, the system offers both traditional bank connections and digital payment options.
Experts Divided on BRICS’ Impact
Despite BRICS’ ambitions, experts are sceptical about its potential to dethrone the dollar. A Capital Economics report described the idea of a shared BRICS currency as “not a viable challenger to the dollar.” However, the initiative reflects growing frustration with the dollar’s dominance, which has long been criticised by China and others as a source of global economic instability.
Trump’s tariff threat seeks to halt these efforts, demanding commitments from BRICS nations not to introduce a rival currency or back alternatives challenging the dollar’s supremacy.
Implications for U.S. and Global Trade
While Trump’s past tariff threats against Mexico and Canada resulted in successful negotiations, it remains unclear whether similar tactics will work with the broader BRICS coalition. Negotiations in the coming months could determine whether this escalates into a global trade conflict.
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