TRUMP Threaten BRICS countries with 100% Tariff for Dedollarization: Wha...

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president-elect Donald Trump has issued

0:04

a Stern warning to the brics Nations

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demanding assurances that they will not

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pursue the creation of an alternative

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currency to rival the US dollar Trump

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reiterated his commitment to defending

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the dollar status as the world's primary

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Reserve currency and threatened to

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impose significant economic penalties

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including 100% tariffs on countries that

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challenge its dominance for decades the

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US dollar has held a dominant position

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in International Trade serving as the

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world's primary Reserve currency this

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dominance has provided the United States

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with significant economic advantages

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such as the ability to borrow at lower

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costs and impose Financial sanctions

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effectively however recent years have

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seen an increased push from countries

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particularly within the brics block to

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establish alternative payment systems

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and reduce Reliance on the dollar Russia

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for instance has actively advocated for

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a brics payments mechanism to facilitate

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trade in local currency

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and bypass the dollar dominated

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Financial system Trump's warning can be

1:05

interpreted as a sign of the United

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States ackowledgement of the growing

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momentum behind dollarization

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efforts in a landmark move in early 2023

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China and Brazil the two largest

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economies in the brics block signed an

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agreement to settle trade transactions

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in their local currencies the Chinese un

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and the Brazilian reel this Arrangement

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eliminates the need for US dollars as an

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intermediary simplifying trade

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procedures and reducing exchange rate

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risks for businesses in both countries

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according to reports the bilateral trade

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volume between China and Brazil reached

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approximately $150 billion in 2022 with

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China being Brazil's largest trading

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partner this shift to local currencies

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is expected to further boost trade by

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lowering transaction costs and fostering

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Financial Independence

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Iran and Russia have taken significant

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steps to integrate their banking systems

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aiming to facilitate bilateral trade and

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financial transactions while

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circumventing Western sanctions this

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collaboration includes the

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interconnection of their National

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payment networks and the mutual

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acceptance of bank cards enhancing

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economic cooperation between the two

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nations in early 2023 Iran and Russia

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linked their banking infrastructures

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allowing Iranian financial institutions

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to connect with Russian Banks and over

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100 Banks from 13 other countries

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through Russia's system for transfer of

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financial messages an alternative to the

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Swift Network this connection enables

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the opening of letters of credit

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transfers and guarantees without relying

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on Swift thereby mitigating the impact

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of Western Financial sanctions on July

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6th 2024 the Central Bank of Iran

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announced the integration of Iran's

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shitab interbank network with Russia's

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Mir payment system this development

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allows the use of Russian Mir cards

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within Iran facilitating transactions

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for Russian tourists and businesses

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operating in the country the initiative

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aims to reduce dependence on Western

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Financial systems and promote bilateral

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economic activities by November 2024

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Iran and Russia had further Advanced

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their financial integration by enabling

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the use of Iranian bank cards in Russia

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this move allows Iranian citizens to

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conduct transactions and withdraw cash

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in Russia using their domestic bank

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cards thereby enhancing Financial

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accessibility for Iranians abroad and

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strengthening economic ties between the

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two

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Nations India and Russia have also

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embraced local currency trade

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particularly in the energy sector

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following Western sanctions on Russia in

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2022 the two countries increased the use

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of the Indian rupee and Russian Ruble

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for transactions Russia became India's

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largest supplier of crude oil in 2023

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with a significant portion of these

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deals settled in Indian rupes this shift

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allowed both Nations to bypass dollar

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denominated payment systems shielding

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them from external economic

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pressures South Africa's un-based

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transactions South Africa the smallest

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bricks economy has also shown interest

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in increasing trade settlements in un

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China is South Africa's largest trading

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partner with bilateral trade exceeding

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$50 billion annually in 2023 South

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Africa signed agreements to use un for

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various Imports particularly machinery

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and electronics thereby reducing its

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Reliance on dollars and boosting when

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liquidity in African

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markets establishment of brics pay brics

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pay is a decentralized payment system

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developed to facilitate seamless

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Financial transactions among member

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countries using their local currencies

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this initiative aims to diminish

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dependence on Western Financial networks

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such as the society for worldwide

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interbank Financial telecommunication

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Swift and to promote Financial

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sovereignty within the block

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development and implementation launched

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in 2018 by The brics Business Council

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brics pay integrates existing National

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payment infrastructures including

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Russia's Mir Network and India's unified

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payments interface UPI this integration

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enables users to conduct crossb

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transactions in their native currencies

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the Russian Ruble Chinese un Indian rupe

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Brazilian real and South African rand

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thereby streamlining payments and

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reducing transaction costs the system

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employs a decentralized star topology

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architecture creating distributed

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networks for transmitting payment

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information and liquidity this design

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ensures high-speed deployment

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scalability and resilience against

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unilateral restrictive measures

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enhancing the systems efficiency and

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security strategic objectives by

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providing an alternative to Swift bricks

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pay seeks to mitigate the impact of

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potential sanctions and reduce exposure

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to currency fluctuations the platform's

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inclusivity and transparency are

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intended to Foster greater economic

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cooperation among brics nations and with

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their Global

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Partners accumulation of gold reserves

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in a concerted effort to strengthen

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Financial stability and provide a hedge

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against currency volatility and

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geopolitical risks brics countries have

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been significantly increasing their gold

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reserves as of the second quarter of

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2024 brics Nations collectively hold

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approximately 6,200 tons of gold

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accounting for 21.4% of the world's

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total gold reserves Russia leads with in

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the block with 2340 tons or 88.1% of

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global reserves followed closely by

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China with 2260 tons or

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7.8% between 2018 and 2024 Brazil's gold

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reserves index increased nearly

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three-fold indicating a robust strategy

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to bolster Financial defenses this trend

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reflects a broader movement among brics

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countries to diversify their reserves

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away from the US dollar the accumulation

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of gold serves as a safeguard against

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economic San and enhances monetary

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policy autonomy by holding substantial

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gold reserves brics Nations aim to

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reduce their vulnerability to external

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Financial pressures and promote a more

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multi-polar Global Financial system

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collectively the establishment of brics

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pay and the Strategic accumulation of

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gold reserves underscore the brics

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nation's commitment to fostering a more

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resilient and independent Financial

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architecture capable of withstanding

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global economic uncertainties and

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reducing Reliance on tradition Western

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Financial

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systems let's take a quick pause if

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thank you for watching now let's dive

7:48

back

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in the 16th bricks Summit held in Kazan

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Russia from October 22nd to 24th 2024

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marked a significant step in the Block's

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DD dollarization efforts and expansion

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plans the summit concluded with the

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adoption of the Kazan declaration

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emphasizing the need for a multi-polar

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world order and advocating for reforms

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in Global Financial systems to reduce

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dollar dominance 13 countries including

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Algeria Belarus Bolivia Cuba Indonesia

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Kazakhstan Malaysia Nigeria Thailand

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turkey Uganda usbekistan and Vietnam

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were added as partner countries this

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expans reflects brics's growing

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influence and its commitment to

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representing the global South the summit

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discussed creating an autonomous crossb

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settlement and depository system to

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facilitate trade in local currencies

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Finance ministers were tasked with

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exploring the use of national currencies

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and Reporting on their findings in

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future meetings notable bilateral

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meetings occurred on the sidelines of

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the summit Chinese president Xi Jinping

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and Russian President Vladimir Putin

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reaffirmed their strategic partnership

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while Indian prime minister Narendra

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Modi and president XI addressed border

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tensions signaling a thaw in

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relations why D

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dollarization countries are actively

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working to reduce their Reliance on the

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US dollar in international trade and

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finance a process known as

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dollarization this shift is driven by

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several key motivations one major factor

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is the pursuit of economic sovereignty

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and stability the dominance of the US

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dollar gives the United States

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significant influence over the global

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economy and its monetary policies can

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create instability in other nations by

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moving away from the dollar countries

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aim to regain control over their

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economic policies and reduce their

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exposure to external shocks Additionally

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the Reliance on the dollar makes

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countries vulnerable to US economic

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sanctions which can restrict access to

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the Global Financial system Nations like

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Russia and China are exploring

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alternatives to maintain economic

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autonomy and avoid these potential

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constraints another motivation is the

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diversification of Foreign Exchange

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reserves traditionally central banks

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have held a large portion of their

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reserves in US dollars but there is a

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growing Trend to diversify into other

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currencies and assets like gold this

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approach spreads risk and reduces

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dependence on the dollar geopolitical

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considerations also play a role as

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countries like China and Russia aim to

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counteract US economic dominance by

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promoting the use of their own

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currencies in international trade this

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effort aligns with their broader goal

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goal of fostering a multi-polar Global

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Financial system countries are also

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leveraging regional trade agreements to

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facilitate transactions in local

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currencies bypassing the dollar for

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example China and Brazil have agreed to

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trade using their respective currencies

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simplifying transactions and reducing

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conversion costs lastly the shift away

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from the dollar reflects global economic

10:51

changes as emerging economies expand

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their influence in international trade

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they are increasingly using their own

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currencies to reflect their growing

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economic power and strengthen their

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financial markets together these factors

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highlight the diverse and strategic

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motivations behind the global trend of

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dollarization now let's talk about

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Trump's warning to brics Nations on

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Saturday Trump urges brics Nations to

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maintain US dollar dominance threatening

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severe tariffs the brics countries

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seeking to undermine the dollar is an

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unacceptable move and it ends now Trump

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declared on his truth social platform on

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Saturday

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we require a firm commitment that these

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nations will not create or support any

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alternative currency that threatens the

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US dollar if they fail to comply they

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can expect 100% tariffs and a complete

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loss of access to the incredible US

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market throughout his campaign Trump has

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vowed to make it economically unfeasible

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for Any Nation to abandon the US dollar

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his latest remarks have heightened

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tensions as he prepares to assume office

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in January Trump's threats align with

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his broader strategy of leveraging

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tariffs to enforce compliance on

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economic

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matters strategic measures to protect

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the dollar Trump's advisers have

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reportedly been exploring ways to

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penalize Nations that engage in

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bilateral trade using non-dollar

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currencies proposed measures include

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imposing export restrictions labeling

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countries as currency manipulators and

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instituting additional trade levies

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these strategies reflect Trump's

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long-standing commitment to maintaining

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the Dollar's Central role in global

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trade during a March interview he stated

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allowing Nations to move away from the

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dollar would be a significant blow to

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the US the issue of dollarization gained

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prominence after the brics Nations

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discussed reducing Reliance on the US

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dollar at their 2023 Summit the push for

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alternative currencies gained momentum

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in 2022 when us-led sanctions against

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Russia Amplified Global frustrations

12:52

with dollar dominance Trump's campaign

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has particularly focused on countering

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these efforts signaling a Hardline stand

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against any economic block that

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undermines the

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dollar tariff threats and Global Market

13:06

reactions Trump has already caused

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ripples in global markets with his

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proposals to impose additional tariffs

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on trading partners he previously

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announced plans to Levy a 10% tariff on

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goods from China and a 25% tariff on

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imports from Mexico and Canada unless

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those countries take stronger actions to

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combat drug trafficking and illegal

13:26

immigration Canadian Prime Minister

13:28

Justin TR Trudeau recently met with

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Trump to discuss trade and Border

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concerns following the Tariff threats

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signaling efforts to ease tensions

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between the two countries however

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Trump's approach underscores his

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willingness to use economic tools to

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achieve broader policy objectives both

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domestically and internationally there

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is no scenario where the brics Nations

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can replace the US dollar in global

13:52

trade Trump asserted any country

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attempting to do so risks losing access

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to the US economy entirely As Trump

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prepares to take office his

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administration's Hardline economic

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policies are likely to be a focal point

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of his second term with significant

14:07

implications for international trade and

14:12

diplomacy that's all for this video

14:15

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