Donald Trump sends new warning to China-led bloc over US dollar

On Saturday, President-elect Donald Trump, in an article in Truth Social, issued a stark warning to China and its trade allies over their plans to replace the U.S. dollar as the world's currency.

“The idea that the BRICS countries are trying to move away from the dollar while we sit idly by is over,” he wrote in his message. “We demand that these countries commit not to create a new BRICS currency, nor support another currency to replace the powerful US dollar, otherwise they will face 100% tariffs and should expect to say goodbye to selling in the wonderful United States Economy.

The president-elect added: “They can go get another “asshole!” » There is no chance that BRICS will replace the US dollar in international trade, and any country that tries would have to say goodbye to America. »

China and Russia (officially) formed the BRIC trading bloc in 2009, alongside Brazil and India. A year later, South Africa joined and the group adopted the name BRICS.

Members voted in 2023 to significantly expand membership, ultimately extending an invitation to Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates (UAE) , as the bloc seeks to effectively disrupt the global strength of the dollar.

News week contacted the Trump transition team and the foreign ministries of China, Russia, India, Brazil and South Africa by email Saturday afternoon for comment.

Argentina initially accepted the invitation, but after the shock victory of libertarian candidate Javier Milei, the new national government withdrew from the ascension process.

Expanding membership would apparently be the first step toward a major economic break with the West by moving to a common currency called Unity, which would be backed 40% by gold and 60% by local currencies members of BRICS.

While four countries formed the bloc and voted in favor of each expansion measure, analysts noted China's greater influence over the group's overall operations. China and India have clashed over how the group could expand, with China seeking rapid expansion while India wanted slower integration alongside talks with the G7 on reforming economic and financial systems.

China ultimately won, leading to a vast and sudden expansion in membership and invitations to new members, according to The Atlantic Council.

Trump made clear Saturday that he views such moves as hostile and would take economic retaliatory measures if the bloc pursues its goals.

The inclusion of Iran in the plan would mark a new stage in the growing cooperation between Tehran, Moscow and Beijing, which has intensified in the years following Russia's invasion of Ukraine that began in February 2022.

China initially supported Russia by agreeing to buy around 100 million tonnes of coal from Moscow just before the invasion began, and China also bought more Iranian oil – two moves that offset the impact of sanctions Americans on Beijing's two allies.

Fyodor Lukyanov, chairman of the Council on Foreign Relations' Foreign and Defense Policy Council (Russia), wrote in 2023 that BRICS appeals to Southern nations “desiring different options for building political and economic ties, without ties to the United States. and EU guidelines and mechanisms.

Trump's threat against BRICS members could prove effective if, as Lukyanov writes, “not all member states consider their participation in the bloc a priority.”

“However, the general movement towards the diversification of the world order and the abandonment of the domination of a particular group will continue, and the BRICS will play an increasing role in it,” he warned.

Trump campaigned on promising to introduce heavy tariffs against China until it addresses the production of materials used to make fentanyl, as well as a possible universal tariff on all imports to the United States.

China, for its part, criticized Trump's tariff proposal, accusing his administration of unfairly attributing responsibility for the US opioid crisis linked to fentanyl flows.

Last week, Trump announced he would impose 25 percent tariffs on Mexico and Canada “until drugs, especially Fentanyl, and all illegal aliens put an end to this invasion of our country!

“Mexico and Canada have the absolute right and power to easily resolve this long-simmering problem,” he wrote in a Truth Social article Monday.

The threat prompted Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum to reach out to Trump and have “friendly and constructive” conversations, with Trudeau even visiting Trump at his Mar-a-Lago residence in Florida Friday.