Trump Advisors Discuss Sanctions Against BRICS Countries Over US Dollar Use

Advisers to former US President Donald Trump have been discussing the possibility of imposing sanctions on countries that are moving away from using the US dollar in foreign trade, according to sources cited by Bloomberg. The Trump team is reportedly considering sanctions on both allies and opponents who actively seek to conduct bilateral trade in currencies other than the dollar.

The discussions among Trump's economic advisers are aimed at countering nascent moves among key emerging markets to reduce their exposure to the US currency and the dollar's dominance in the global financial system. Potential penalties being considered include export controls, currency manipulation charges, and tariffs against allies or adversaries who seek to engage in bilateral trade without using the dollar.

The report comes as the BRICS nations, which include Brazil, Russia, India, China, and South Africa, have been discussing the "de-dollarization" of their economies. These countries are also expanding their group to include major oil producers like Saudi Arabia and the United Arab Emirates.

Why this matters: The potential sanctions under consideration by Trump's advisers highlight the growing tensions over the US dollar's role as the world's dominant currency. The move could have significant implications for global trade and financial markets, as countries seek to diversify away from the dollar and reduce their reliance on the US financial system.

Trump has previously expressed a desire to keep the dollar as the world's reserve currency, and his campaign has indicated they may target the BRICS' efforts to move away from the dollar in a potential second term. However, Trump has also privately said he does not currently see the merits of direct dollar intervention.

Maria Zakharova, the Russian Foreign Ministry spokesperson, has described the US dollar as "an instrument of hegemony and a new form of colonialism that is used to punish, segregate, and complicate the lives of other countries." She stated that de-dollarization has become a reality, reflecting the growing sentiment among some nations to reduce their dependence on the US currency.

The discussions among Trump's advisers underscore the ongoing debate over the future of the US dollar and its role in the global financial system. As countries like the BRICS nations seek to diversify their trade and financial relationships, the potential for sanctions and other measures from the US could further escalate tensions and reshape the international economic landscape.

Key Takeaways

• Trump advisers discuss sanctions on countries moving away from US dollar.
• Potential penalties include export controls, currency manipulation charges, and tariffs.
• BRICS nations discussing "de-dollarization" of their economies, expanding group.
• Sanctions could have significant implications for global trade and financial markets.
• Debate over future of US dollar's role in global financial system intensifies.