What's happened
On November 30, 2024, Trump announced plans to impose a 100% tariff on BRICS nations unless they abandon efforts to create a competing currency to the US dollar. This follows his earlier tariff threats against Canada, Mexico, and China, aimed at curbing crime and drug trafficking. Experts warn of potential price increases for consumers.
Why it matters
What the papers say
According to Ayelet Sheffey from Business Insider, Trump stated he would impose a 100% tariff on BRICS nations unless they abandon plans for a competing currency. This follows his earlier threats of a 25% tariff on imports from Canada and Mexico, which experts warn could lead to significant price spikes for consumers. Peter Coy from the New York Times highlights the interconnectedness of US trade with Canada and Mexico, suggesting that tariffs could disrupt critical supply chains. Meanwhile, Ariana Baio from The Independent notes that Trump's tariffs are framed as a response to crime and drugs, but the economic implications could be severe, particularly for the auto and oil industries.
How we got here
Trump's tariff proposals stem from his ongoing campaign to reduce reliance on the US dollar in international trade. The BRICS nations have discussed creating a common currency, prompting Trump's threats as a negotiating tactic. His previous tariffs on Canada and Mexico were also framed as measures against illegal immigration and drug trafficking.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Mexico, officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea
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