Trump earlier threatened that he would impose a 25% tariff on Canada and Mexico when he takes office in January unless they secured their borders with the US. And prevent illegal immigrants and illegal goods from entering the United States through those borders.
As if that's not enough trump has threatened BRICS Nation with a 100% tariff if they attempt to replace the dollar in order words he is saying if you join BRICS and leave the dollar to trade with other currencies, he will tariff you.
Now how would this affect the so-called BRICS Nation let's look at Brazil, Russia, China and South Africa because India has already made it clear that they have no plans to boycott the dollar and South Africa is just not worth looking at the moment and am not sure other countries will try to test Trump which leaves us with two countries that might be bold enough to to try it and that's Russia and China.
China exported $3.577 trillion worth of goods in 2024 with 14.7 of that heading to the USA and as it stands apart from the Association of Southeast Asian Nations the United States is their biggest export partner followed by the European Union
therefore if 100% tariff is placed on Chinese products it would rapidly lead to a decline in Chinese export which might lead to a trade deficit apart from that Chinese GDP suffers and industry would slow down production and China would definitely retaliate and the United States would suffer also but which country do you think would bear the most consequences.
Do you think the Chinese are prepared for another trade war with the United States because of some plan to De-dollarization
Am not going to talk about the effects on Russian Economy they are still battling with the effects of war I am not sure they can afford any economic war.
Posted Using INLEO