President Donald Trump has once again threatened the BRICS (nine nations). Trump said that if the nine nations (BRICS countries) try to weaken the US dollar, he will impose 100 percent tariff on them.

BRICS includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates. The US dollar is by far the most widely used currency in global trade.

What is the thinking of the BRICS countries?

The members of BRICS say that they are fed up with the monopoly of America in the global financial system. Developing countries want that global dependence on the US dollar and euro should be reduced. At the same time, developing countries should be able to take better decisions for their economic interests.

During the BRICS summit in 2023, the member countries had also discussed about introducing their own currency. At the same time, a proposal was also made to create a common currency for mutual trade and investment among the BRICS countries. Trump did not like this proposal.

India's tension will increase due to imposition of tariff

If Trump takes any decision against the BRICS countries, it will be a challenge for India. India and America have a strong trade relationship. India can suffer a major setback due to the imposition of tariffs.

Bilateral trade between India and the US stood at US$118.3 billion in FY 2023-24. India exported goods worth $41.6 billion to the US in this financial year.