- Donald Trump’s newest tariff menace is to levy 100% duties on items from the 9 BRICS international locations.
- He framed the menace as a bargaining chip, warning BRICS towards competing with the US greenback.
- The US imported billions of {dollars} of products from BRICS in 2023, together with attire and electronics.
President-elect Donald Trump’s newest commerce menace on 9 international locations might have an effect on key US imports, risking value will increase if the tariffs are carried out.
In a Saturday put up on Truth Social, Trump focused the BRICS group, which includes 9 international locations: Brazil, Russia, India, China, South Africa, Ethiopia, Egypt, Iran, and the United Arab Emirates. All have pushed to curb the worldwide dominance of the US greenback. He wrote that he would impose a 100% tariff on these international locations’ items until they dedicated to not creating one other foreign money that competes with the greenback.
“There isn’t any likelihood that the BRICS will substitute the U.S. Dollar in International Trade, and any Country that tries ought to wave goodbye to America,” Trump wrote.
Business Insider seemed on the prime items the US imports from BRICS nations, together with drugs, attire, and electronics. While Trump seems to be utilizing the tariff threats as a negotiating device and will select to not implement them on the scale he is proposing, the highest imports from the focused international locations might see costs improve even with smaller tariffs.
Census Bureau commerce knowledge confirmed that in 2023, the BRICS nations collectively accounted for about $578 billion in US imports. China was accountable for the lion’s share of that commerce, with about $427 billion.
In 2023, the US imported $66.7 billion in cellphones and different family items from China, $37.4 billion in computer systems, and $32 billion in toys, video games, and sporting items.
The US imported $151 billion in items from the remaining eight BRICS nations, together with over $11 billion in pharmaceutical preparations, adopted by practically $9 billion in gem diamonds, $6.3 billion in crude oil, and $6.1 billion in cotton attire and family items. India accounted for a lot of the imports from BRICS nations apart from China.
Trump is focusing on this group as a result of some BRICS leaders have beforehand instructed appearing to cut back their international locations’ reliance on the US greenback. Last 12 months, Brazilian President Luiz Inácio Lula da Silva proposed creating a typical foreign money among the many BRICS nations.
The tariff menace on BRICS got here simply days after Trump mentioned he would impose a 25% tariff on imports from Mexico and Canada that might stay in impact “till such time as Drugs, specifically Fentanyl, and all Illegal Aliens cease this Invasion of our Country!” He additionally warned of a ten% tariff on imports from China on prime of any further tariffs put in place on the nation.
Russia has already responded to Trump’s tariff menace. The Kremlin spokesperson Dmitry Peskov advised reporters on Monday that if the US used “financial drive to compel international locations to make use of the greenback,” it might empower international locations to shift to different currencies for worldwide commerce.
Some corporations, together with Walmart and Columbia Sportswear, have already mentioned they’re making ready to extend costs ought to Trump implement tariffs on key buying and selling companions.
The Trump crew didn’t instantly reply to a request for touch upon the impression of Trump’s tariff threats on costs. Trump has beforehand mentioned tariffs won’t harm Americans, misleadingly calling them “a tax on one other nation” (tariffs imposed by the US are paid by US importers).
During Trump’s first time period, he threatened tariffs towards Mexico as a response to unlawful immigration over the southern US border however later withdrew the plan. Sen. Bill Hagerty advised NBC News on Sunday that commerce had lengthy been used as a “strategic device,” and he mentioned he supported Trump utilizing tariffs as leverage to attain his priorities.
“We have to take a really exhausting take a look at international locations that do not have our greatest pursuits at coronary heart, international locations which are permitting our borders to be violated,” Hagerty mentioned, “and use these tariffs as a device to attain our ends.”
