Trump threatens 100% tariffs against India and other BRICS nations
What's the story
US President Donald Trump has sent a strong warning to BRICS nations, including India. He said the countries could face 100% tariffs if they continue to work toward reducing the use of the US Dollar in global trade. "As a BRICS nation...they'll have a 100% tariff if they so much as even think about doing what they thought," Trump said at the Oval Office press conference.
Drive
BRICS nations' de-dollarization efforts
BRICS is an international grouping formed in 2009 and includes India, Brazil, Russia, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Iran and Indonesia. Notably, the US is not a part of this grouping. Over the past few years, a few member nations such as Russia and China have been looking at Dollar alternatives or thinking of their own BRICS currency. India, however, is yet to join the bandwagon.
Tariff warning
Trump's tariff threat not a bluff
Trump stressed that his tariff threat is not an empty one. "If the BRICS nations want to do that, that's OK, but we're going to put at least a 100% tariff on the business they do with the United States... It's not even a threat," he said. This comes after Russian President Vladimir Putin's call for de-dollarization at the 15th BRICS summit in 2023.
Position clarified
India's stance on de-dollarization
Unlike other BRICS countries, India has not indicated any interest in de-dollarization. Last month, former Reserve Bank of India (RBI) Governor Shaktikanta Das had clarified that India has not taken any steps in this direction. Rather, the country is working on insulating domestic trade from geopolitical disruptions. Das had stressed that de-dollarization was not an option for India at this stage.