BRICS presses on with settlement system despite Trump’s 100% tariff threat

Despite U.S. President-elect Donald Trump’s threat to impose 100% tariffs on countries that undermine the dollar, the BRICS group (Brazil, Russia, India, China, and South Africa) will continue working on its settlement system, according to a senior Russian official.

Key points

• Trump’s threat: Last week, Trump demanded that BRICS countries refrain from creating or supporting a new currency that could replace the U.S. dollar, warning of 100% import duties otherwise.
• BRICS response: Russian Deputy Foreign Minister Alexander Pankin confirmed that BRICS is focusing on developing a settlement system, not a new currency.
• Ongoing efforts: Pankin stated that the work on the settlement system would continue despite Trump’s remarks.

Details

In response to U.S. President-elect Donald Trump’s recent warning, BRICS countries are set to press on with their development of a new settlement system. Trump, last week, demanded that BRICS nations commit to not creating a currency to challenge the U.S. dollar’s dominance, or else face 100% tariffs on imports.

Russian Deputy Foreign Minister Alexander Pankin addressed the issue on Friday, confirming that BRICS was not working on a new currency, but rather focusing on a settlement system that would enhance financial cooperation within the group. “Of course, it will continue,” Pankin said, reaffirming that BRICS’ efforts to establish the system would go ahead as planned, regardless of the threats from the U.S.