How an upstart global payment system led to Trump's latest tariff threat

Published On Dec 2, 2024, 1:55 PM

Donald Trump's recent tariff threat against countries moving away from the US dollar is linked to the emergence of BRICS Pay, an initiative by BRICS nations (Brazil, Russia, India, China, and South Africa) to offer an alternative to the US-dominated financial system. This development, including aims to facilitate transactions in national currencies bypassing the US dollar, raises concerns in the US about potential impacts on the global financial order. Trump’s aggressive comments suggest a possible escalation in trade tensions as he seeks to maintain the dollar's dominance and challenge the influence of BRICS.

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The emergence of BRICS Pay may increase pressure on the USD, prompting US actions to safeguard its standing in international trade. Tariff threats could negatively affect markets tied to export nations that might adopt BRICS Pay.

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