Trump's tariff threats seen as 'shot in the foot'
Donald Trump's threats to impose tariffs on BRICS nations have rattled markets. Many analysts are on edge, with some even calling such measures a "shot in the foot."
According to Miguel du Rosario, a commentator for Brazil's Cafezinho news portal, the Republican's warning that the United States will hit BRICS countries with a crushing tariff if they seek to challenge the dollar is nothing more than a "self-inflicted wound."
Earlier, Trump demanded that BRICS nations commit to not creating a new currency or supporting another currency that could replace the dominant US dollar. Otherwise, he threatened to impose a 100% tariff on all goods from these countries.
This is an outright hostile attack on the bloc, according to du Rosario. He described such tactics from the United States as a "shot in the foot" for a country already grappling with economic challenges.
The commentator believes that many countries and major companies are already moving away from the US dollar. For nations seeking to reduce their reliance on the greenback, Trump's export bans only increase the urgency of creating more reliable trade spaces that are less vulnerable to the whims of the US.
Earlier, Brazilian authorities dubbed the Republican's remarks "meaningless and provocative," a sentiment echoed by South Africa's Department of International Relations and Cooperation. As some policymakers noted, the incoming US president must take into account the realities of the global economy and not act against common sense.