Trump threatens to do tariffs on Beijing-what worries him?

Trump threatens to do tariffs on Beijing-what worries him?

While US President Donald Trump has a Handelskris is a new target group in its focus: emerging large economies. In the last few days, Trump members цього Clubs supported by China and Russia with 10% tariffs imported to the USA - in addition to the upcoming elevated tariffs that affect some of these countries.

"Every country that allies with the anti-American policies of Brics" will be exposed to these taxes with "no exceptions", Trump Social media , while the group leaders gathered for an annual summit in Rio de Janeiro. A short time later he went further and indicated that he wanted to break up the group: "If you are members of Brics, you have to pay 10% inches alone - and you won't stay a member for long," said Trump during a cabinet meeting.

The growing meaning of Brics

Trump's interest in Brics falls into a time when the club seems to be gaining in importance. The eponymous members of Brazil, Russia, India, China and South Africa have expanded their group around Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates since last year - and other countries are waiting for an admission. It is unclear whether Saudi Arabia accepted an invitation to membership.

In addition, the international headlights on the group, which acts as the global south of the US G7 economies, is often considered to be too politically and ideologically heterogeneous in order to be effective. This raises the question of what Trump is concerned with while he is skeptical from Washington.

The threat from Brics for the dollar?

In his statements against the group, Trump identified an area as a special threat: the currency. "Brics was founded to harm us, Brics was founded to weaken our dollars and replace it as a standard," said Trump during the cabinet meeting on Tuesday.

He is not the first time that Trump says something in this kind. In November, when he was elected, he threatened Trump that he would "100% Zölle" on Brics-Länder to "create a new Brics currency or to introduce another currency that replaces the mighty US dollar." Early in the year he confirmed the threat to the “apparently hostile” Brics countries.

goals and challenges of Brics

The ambitious plan of a "Brics currency" was of proposed to Brazilian president Luiz Inácio Lula da Silva in 2023, but this suggestion is so complex that it could be practically impossible. However, the BRICS countries are interested in expanding the trade in their national currencies instead of relying on the US dollar-a goal that, if it is successful, could reduce the dollar addiction of a significant part of the global economy

according to some estimates more than a third of the global GDP based on the purchasing power parity. Currently, the size of the US economy and the stability of the dollar are the lifeline of global finances-and an important factor in American global.

mutual interests and tensions

in a , which was released during their summit on Sunday, supported the BRICS leaders on constant discussions about a "cross-border payment initiative" between the member countries. analysts say that such a system is potentially an alternative to Swift interbank network could be used in which currencies of the BRICS countries or their digital equivalents are used.

But even if the will exists, this transition will not be faster - and there will probably be many different views and competing interests within Brics about how this can be achieved, not to mention technical challenges. Brasilien’s Lula after Monday that he again believes that global trade needs alternatives to the US dollar, but added that this is something that is "gradually" and "careful".

The economic coalition of the founding members of Brazil, Russia, India and China was founded in 2009 after the US financial crisis, which gave new trust in their role in the global economy. The group, which invited South Africa in 2010, is even more than a geopolitical conglomerate than ever, consisting of authoritarian states, both communist and theological, lively, far -reaching democracies and other in between.

Although the members of the group claim that this does not make BRICs "anti-West", Russia and China have experienced increasing tensions with the West in the past ten years, with China's growing assertiveness on the global stage and Russia invasion in Ukraine to lead to the fact that observers say tried to form the group into a sharper tool to combat the US power.

Not everyone agrees. India's Prime Minister Narendra Modi Warned At a BRICS summit last year, you should "be careful so that this organization does not receive the image of an institution that wants to replace global institutions." In the meantime, the top leaders of several countries, including China, the VAE and Egypt were missing at this year's meeting, which indicates that the group is not at the top of their immediate agenda.

Nevertheless, Trump's global customs war strategies was a unique force for Brics. During their summit in Rio, the leaders published a joint explanation in which they expressed "serious concerns" about the "increase in one-sided customs and non-customs measures"- an obvious swipe at the trade guidelines of the Trump administration.

The members also found common ground on non-economic points directed against the United States, even if they carefully expressed this. Her last explanation mentioned a 12-day conflict between Israel and the Member State of Iran by convicting recently carried out military attacks on Iran and "expressing serious concerns" about "intentional attacks on civilian infrastructure" and "peaceful" nuclear systems.

However, Israel was not mentioned in this context after Israel had held attacks on Iran for days last month. The United States, which bombed three Iranian nuclear facilities in the course of the same attack, were not mentioned by name.