What Much of the Media Has Been Missing About Trump’s Current Tariffs Threat
Donald Trump, in a pre-inauguration day attempt to begin slowing down what has been termed the global “de-dollarization” process, has threatened to slap a 100% tariff on BRICS nations if they try to replace the US dollar with another currency. Notice that Trump used the words “if they try to replace the US dollar”.(1) He didn’t say “if they choose not to use the US dollar”. In other words, SO FAR, Trump has not said that a tariff will be placed on nations who don’t use the dollar. What he’s said essentially, so far, is that if the new economic alliance of BRICS nations creates a currency whose aim is to replace the dollar, then there will be tariffs of 100%. These are two entirely different declarations. The distinction is very important.
Trump’s Tariffs Will End Up Strengthening Rather Than Weakening BRICS Nations
If however, Trump changes the wording of his initial threat and says that he will employ a 100% tariff on countries that choose not to use the dollar, then he’s going to be in for a surprise. Since early 2023, BRICS charter has grown to include, so far, 10 countries, with dozens more prospective countries waiting to be approved for BRICS membership. BRICS already contains half of the world’s population, almost half of the world’s oil and is fast approaching 50% of the worlds GDP. BRICS members span four continents as well, with members in South America, Asia, Europe and Africa.(2)
In other words, the world economic order that Trump is going to be dealing with in 2025 is completely different than the one he was dealing with from 2017 to 2020. If Trump tries to use tariffs against the members and the prospective members of the BRICS alliance, he’s going to find that it will have the opposite effect from the one he desires. The tariffs will eventually, if not immediately drive nations further away from the dollar and into the arms of BRICS.
The New Multipolar World Order and the Increasing Futility of US Tariffs and Sanctions
This is precisely what happened when the Biden administration tried to sanction Russia (14 rounds of sanctions) in 2022 – 2024. It produced a “bolt to BRICS” as Russia’s economy soared from being number six in the world to number four. This is because China, India, Russia, Brazil, South Africa and the other BRICS nations have created an interdependent hybrid economy that no longer needs to bow to the dictates of the US.
The unipolar Era of US dominance is over.(3) The final nails in the unipolar coffin were hammered in in 2022, when China and Russia officially joined forces and in 2023-2024, when Russia triumphed economically despite the US and NATO’s attempt to crush them.(4)
The multipolar era has begun. Trump and co. need to become aware of this and to begin working with our global neighbors rather than threatening them. This, whether one wants to argue with the facts or not, will be the only way to global peace and prosperity in the future.
CITATIONS:
1) https://www.msn.com/en-us/money/markets/why-is-trump-threatening-a-100-tariff-on-the-brics-nations/ar-AA1v8OaT?ocid=BingNewsSerp
2) https://www.bcg.com/publications/2024/brics-enlargement-and-shifting-world-order#:~:text=The%20growing%20BRICS%2B%20gives%20emerging%20markets%20the%20opportunity,Fund%2C%20that%20are%20strongly%20influenced%20by%20the%20West.
3) https://www.theinteldrop.org/2024/10/22/the-world-is-now-multipolar-despite-what-those-nostalgic-for-unbridled-unipolarity-say-2/
4) https://simonmercieca.com/2024/06/02/russia-is-now-the-fourth-largest-economy-in-the-world-world-bank/