In addition to Brazil, Russia, India, China and South Africa, the Brics Group also includes Egypt, Ethiopia, Iran and the United Arab Emirates. The confederation of states, which has existed since 2009, was originally founded to reduce the dominance of the West in global affairs and to create a multipolar world order.
The members say they want to reform the global economic order, which they believe is dominated by Western-style institutions such as the World Bank and the International Monetary Fund (IMF). They also strive to increase trade with each other and reduce dependence on the dollar. The dollar is considered the reference currency for world trade.
At a summit in Kazan, Russia, last month, the states discussed, among other things, strengthening local currencies, but put the project of creating a common currency on hold for the time being, according to Russian President Vladimir Putin.
If the Brics countries continue with their plans, they would have to expect “that they will have to say goodbye to selling to the wonderful US economy,” Trump now warned. Any country that seeks to replace the U.S. dollar in international trade “should wave goodbye to America,” he added.
Tariffs are a central part of Trump’s economic agenda. US law allows the president to impose tariffs on US imports by decree. The Republican wants to reduce the US trade deficit with higher tariffs and, in doing so, target all countries that have “ripped us off for years,” as he says.
A few days ago, Trump announced an aggressive trade policy with high tariffs against neighboring countries Canada and Mexico as well as against his biggest rival China for his first day in office.
