Economist Warns Trump That BRICS Will 'Act Collectively' And Spark A Trade War With US Over 100% Tariff Threats

President-elect Donald Trump’s threat to impose 100% tariffs on BRICS nations if they create an alternative to the U.S. dollar has drawn mixed reactions from leading economists, highlighting tensions over global trade and currency dominance.

What Happened: Milken Institute Chief Economist William Lee suggests Trump’s approach reflects his preference for direct bilateral negotiations over multilateral agreements.

“Trump has shown his desire for direct negotiations,” Lee said, noting the contrast with President Joe Biden‘s behind-the-scenes approach to trade deals. Lee emphasized that Trump’s tariff threats serve as leverage to drive negotiations, particularly with major trading partners.

@MilkenInstitute Chief Economist @wleeimf discusses why President Trump has used the threat of tariffs against its North American allies, China, and the BRICS countries. They are a reminder that making a deal with the US is better than no deal.https://t.co/AvoA762MmJ

— William Lee (@wleeimf) December 2, 2024

However, British economist Dr. Rodney Shakespeare warns that such aggressive tactics could backfire. “Trump thinks he can target BRICS countries individually, but doing this will cause BRICS to act collectively,” Shakespeare told Sputnik, suggesting that America’s declining economic hegemony could leave it vulnerable in a potential trade war.

HITTING BRICS WITH 100% TARIFFS WOULD TRIGGER TRADE WAR US ‘WILL LOSE': ECONOMIST

Dr. Rodney Shakespeare, renowned British economist, visiting professor at Trisakti University and co-founder of the Global Justice Movement, commenting on Donald Trump's threat to slap BRICS with… pic.twitter.com/gh48eTRfUS

— Sputnik (@SputnikInt) December 1, 2024

Economist Peter Schiff offered a different perspective on X, arguing that BRICS nations are making a poor trade by exchanging goods for U.S. fiat currency, contradicting Trump’s assertion that America is being taken advantage of in current trade relationships.

Pres.-elect #Trump claims that the U.S. is a sucker for allowing BRICS nations to supply Americans with low-cost, high-quality consumer goods in exchange for paper dollars. But it's the BRICS nations that are the real suckers, as they trade their real goods for our fiat currency.

— Peter Schiff (@PeterSchiff) November 30, 2024

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Why It Matters: The debate comes as BRICS, which now includes nine member nations, reportedly attracts interest from 34 additional countries. Russian President Vladimir Putin recently emphasized the bloc’s expanding influence and its plans to develop an alternative currency system, potentially challenging dollar supremacy in international trade.

Trump’s stance, posted on X, maintains that any move by BRICS to create an alternative currency would face severe economic consequences, including restricted access to U.S. markets. This position sets up a potential confrontation with the growing economic bloc, which represents a significant portion of global GDP and trade volume.

The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they…

— Donald J. Trump (@realDonaldTrump) November 30, 2024

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.