'It's an economic war on Brics nations': Economist Sharad Kohli weighs in on Trump's threat

NEW DELHI: Economist Sharad Kohli views US President-elect Donald Trump's warning of an economic war on developing nations for de-dollarisation move by the latter.

In an X post, the Trump administration threatened Brics nations that his administration would be imposing 100 per cent tariffs of all imports from those nations, should they dare launching their currency.

As global bifurcation is gaining momentum amid geopolitical and geostrategic shifts in the world, de-dollarisation plans are gaining ground. On the other side, Brics nations, however, are working on dismantling dollar hegemony globally by replacing it with a novel global currency.
"In other words, this will almost put an embargo on imports being done from these countries. If we look at it from the other side, the Brics countries will find it impossible to export their products to the US because 100 per cent tariffs would make exports unviable for the Americans to buy," Kohli told ANI.
The US commands its influence by way of its dollars. Reportedly, an idea was floated at the recent Brics summit for the launch of a currency, which can be used for trade between the member countries. The US sees this idea as a threat as that would reduce the dollar's dominance.

"We have seen countries collapsing around the world because of the foreign exchange dependence on the US dollars."
He remembered that India had to mortgage her gold way back three decades to acquire some foreign exchange.

"The dependence on dollars worldwide is what America commands, and if we look at the numbers, almost 60 percent of the world forex reserves are in US dollars, 88 percent of international transactions are in US dollars, 62 percent debt, SWIFT payments are being done in dollars, and crude oil prices are governed in dollars," Kohli added.
"With this threat coming in, Brics countries may have to rethink. And I think this is also a declaration of an economic war on the developing countries by America. This is completely unfair because this is checking the economic independence of the countries in their respective countries. This is literally an economic war," Kohli asserted. "This is an open declaration by the US President-elect Donald Trump to launch an economic war on the developing countries if they give up US dollars as trading currency between themselves."

Trump, in his X post earlier today Indian time, asserted that the idea that the Brics Countries are trying to move away from the Dollar while the US stand by and watch is over.

"We need a commitment from these Countries that they will neither create a new Brics Currency, nor back any other currency to replace the mighty US dollar or, they will face 100 per cent tariffs, and should expect to say goodbye to selling into the wonderful US economy."

Trump stated further that no chance exists for the Brics to replace the US Dollar in international trade, and any country trying would say goodbye to America.

Foreign affairs expert Robinder Sachdev believes that the threat issued by Trump is a real one.

"Donald Trump's warning should be taken seriously, I think. He will follow it up. It may take some time, maybe six months, maybe one year into his new presidency. But this is something that we can foresee coming. The US in a way is making a last-ditch effort to stay on and be the number one empire in the world. The next four years are going to be critical. What Trump is trying to do is that the world order or the world matrix for the next 40-50 years will be centered around America and America will dominate the foreign policy of nations, the currency of nations and all other related aspects," Sachdev said to ANI.

"What's left to be seen is whether the Brics countries stop their conversations about alternative platforms which they have been doing which I think that they will not. They will continue thinking," he added.
 

#WATCH | Dehradun, Uttarakhand | On a recent threat by US president-elect Donald Trump to BRICS countries regarding de-dollarisation efforts, Economist Sharad Kohli says, "... This will almost put an embargo on imports being done from these countries. If we flip the coin and look… pic.twitter.com/iDwNlYy7rq

— ANI (@ANI) December 1, 2024