WASHINGTON – President-elect Donald Trump has threatened 100 percent tariffs on a group of nine “BRICS” nations if they create a currency to rival the U.S. dollar.
The BRICS group includes China, Russia, Brazil, India, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates. According to the BBC, politicians in Brazil and Russia have suggested creating a BRICS currency to reduce the dominance of the U.S. dollar on the global stage.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump posted to his Truth Social account Saturday. “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
Early last week, Trump also threatened 25 percent tariffs on Mexico and Canada and an additional 10 percent tariff on China. Trump pointed to open borders as the reason for targeting Canada and Mexico, saying both countries “have the absolute right and power to easily solve this long-simmering problem.” Both Justin Trudeau of Canada and Claudia Sheinbaum of Mexico talked to Trump soon after the threats, with all parties reporting “positive” conversations.
This has led some to believe that the primary function of Trump’s threats is to serve as a negotiation tactic.
Republican Senator Ted Cruz highlighted “the importance of leverage” on CBS News’ Face the Nation yesterday. “You look at the threat of tariffs against Mexico and Canada, immediately has produced action,” he said.
Of the BRICS nations, China and India in particular are critical in the furniture world. For the first nine months of 2024, China exported $4.6 billion in furniture to the U.S., making it the second biggest exporter (only trailing Vietnam).
India sits in eighth place, exporting $345.9 million in furniture to the U.S. so far this year. More than any other country however, furniture importers are most optimistic on India, with some naming it earlier this year as their pick for the fastest growing sourcing region. Key positives for the country are its immense population, political stability, appreciation for craft and an improving infrastructure.
Brazil also is a notable exporter of furniture.
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Credit: homeaccentstoday.com
