BRICS vs Trump: The Battle for the USD is Heating Up

Russia criticized the US's threatening foreign policy as BRICS pushes for efforts to reduce dependency on the dollar, pointing out US policy mistakes and escalating global economic tensions. Russia criticizes the 'diplomatic intimidation' of the United States in the context of the power struggle of the US dollar The deadlock over the global role of the US dollar has increased, with BRICS countries preparing to deal with the recent threat from President-elect Donald Trump. Russian Deputy Foreign Minister Sergey Ryabkov clarified in an interview with Tass on Monday that the bloc has no intention of directly challenging the position of the dollar, but is reacting to what he described as the US's misguided economic policies. Ryabkov said: We are ready to explain to Trump, or anyone else, that we do not infringe the dollar. We are drawing conclusions from the irresponsible and fundamental mistakes that Washington has pursued. His comments were made in the context of increasing concerns about BRICS' moves to reduce dependence on the US dollar. Ryabkov noted that the dominance of the US dollar has been undermined not by BRICS, but by Washington's own policies. Quoting Russian President Vladimir Putin, he said, "They are biting the hand that feeds them," referring to the US strategies that, according to Ryabkov, harm global financial stability. Experts have warned that Trump's proposal to impose a 100% tax on BRICS countries if they pursue alternative solutions to the US dollar could have significant global economic consequences. Such comprehensive tariffs could disrupt international trade, leading to increased costs for US consumers and businesses due to higher import prices. This could exacerbate inflationary pressures, potentially prompting the Federal Reserve to adjust its monetary policy, including slowing the pace of interest rate cuts. Additionally, countries like Malaysia, a crucial part of the global semiconductor supply chain, have expressed concerns that these tariffs could cause disruptions, affecting industries reliant on these components. Furthermore, such aggressive trade policies could accelerate these countries' efforts to develop alternative financial systems, thereby reducing the longstanding dominance of the US dollar in the global market. Ryabkov criticizes the US for constantly using economic threats regardless of political leadership. "In general, they have forgotten how to negotiate," he stated, believing that the BRICS alternative economic measures are driven by necessity, not hostility. Tensions escalated after Trump threatened to impose 100% tariffs on goods from BRICS countries if they introduce a new currency or refuse the US dollar. Ryabkov dismissed such warnings as a sign of a larger diplomatic failure. He emphasized: If there is no way out of the deadlock situation that the US has created for itself and other countries, we must create our own way out. While BRICS remains open for dialogue, Ryabkov's statement emphasizes the commitment to pursue policies to address long-standing frustrations with US financial activities, which could potentially create a precedent for economic conflicts. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)