President-elect Donald Trump has issued a warning to the nine-member BRICS alliance, which includes Ethiopia, indicating that they would face 100 percent tariffs if they were to introduce a currency that competes with the US dollar. ‘’It is absurd to say that the BRICS member states will stop using the dollar if we just watch” Trump wrote on social media on Saturday.

BRICS consists of China and Russia, considered the world’s most powerful countries, along with developing nations such as Brazil, India, South Africa, Iran, Egypt, the United Arab Emirates, and Ethiopia. The alliance is believed to be aimed at creating a fair international power balance that would challenge Western hegemony.

Throughout his election campaign, Trump pledged to implement significant tariffs. In recent days, there have been reports of threats of tariffs being made against various countries.

Scheduled to assume office on January 20, 2024, Trump has directed his latest threats towards BRICS, a group mainly populated by developing economies.

Prominent politicians from Brazil and Russia have proposed the creation of a common currency for BRICS nations to reduce the dominance of the US dollar in global trade. However, progress has been hindered by internal disagreements among the member states.

“These countries must demonstrate their unwillingness to replace the mighty US dollar or establish a new BRICS currency. Otherwise, they should be aware that they will face 100 percent tariffs and will lose access to selling their products to the incredible American economy,” Trump warned on a social media platform called Truth.

Some of Trump’s allies have suggested that his threats of imposing tariffs on countries are Trump’s strategic negotiating tactics.

When asked about Trump’s tariff threats, Republican Senator. Ted Cruz mentioned the importance of using imposing tariffs as a bargaining chip. ” We can see how quickly the threat of tariffs on Mexico and Canada led to action being taken,” Cruz stated.

In response to Trump’s declaration of imposing tariffs on Canada, Canadian President Justin Trudeau made an unexpected visit to the United States. President Trudeau traveled to Trump’s residence following the announcement of a 25 percent tariff on Canadian goods imported into the US.

Trump’s nomination of Scott Bessant as Treasury Secretary also indicates that the president-elect’s proposed tariff increases are part of a calculated negotiation strategy.

“In general, I believe Trump is a supporter of free trade,” Bessant stated in an interview with the Financial Times prior to his appointment as secretary.