BRICS Countries Respond to Trump’s Threats on Tariffs and Alternative Currency

Trump’s threats have served as a catalyst for the BRICS countries to strengthen their unity and resolve to advance their economic initiatives. Dec 3, 2024 Photo: BRICS News

December 3, 2024 Hour: 5:49 pm

In addition to the NDB, Preksin mentioned the existence of the Contingent Currency Reserve Fund, designed to stabilize the exchange rate between the currencies of BRICS countries. These achievements reflect the bloc’s commitment to economic and financial cooperation despite external pressures.

On November 30, the president-elect of the United States, Donald Trump, issued a strong warning to the member countries of the BRICS economic bloc, threatening to impose 100% tariffs on their products if they do not abandon their plans to develop an alternative currency to the US dollar. This statement has generated significant rejection and rapid responses from the nations that make up this group.

The spokesman for the Chinese People’s Republic Chancellery, Lin Jian, was one of the first to react, stating that his country will continue strengthening cooperation within the BRICS group, regardless of Trump’s threats.

Jian stressed that China is willing to work with its partners to deepen business cooperation and contribute to the sustainable growth of the global economy.

From Russia, government spokesman Dmitri Peskov also expressed his disagreement with Trump’s statements.

At a press conference, Peskov emphasized that the threats occur in a context where the dollar is losing its attractiveness as a reserve currency. He stated that this phenomenon is part of an “erosion process” that is gaining momentum on the international stage.

In light of these tensions, Oleg Preksin, vice-president of the Council of the Financial and Banking Union of Russia, highlighted recent achievements of the BRICS bloc, such as the creation of the New Development Bank (NDB). This bank was established with an initial capital of $100 billion and currently has a total loan portfolio of about $30 billion.

The leaders of the BRICS countries have reiterated their intention to move forward with their economic and financial plans, including developing an alternative currency to the dollar.

The decision to continue these projects is driven by a search for greater economic autonomy and reduced dependence on the US financial system.

Trump’s threats have served as a catalyst for the BRICS countries to strengthen their unity and resolve to advance their economic initiatives.

The joint response from these countries underscores their commitment to a multipolar economic order and their readiness to face external pressures in an increasingly interconnected world.