Jan 30 (Reuters) - President Donald Trump on Thursday warned off BRICS member countries from replacing the U.S. dollar as a reserve currency by repeating a 100%-tariffs threat he had made weeks after winning the November presidential elections.

"We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs," Trump said on Truth Social in a statement nearly identical to one he posted on Nov. 30.

At the time, Russia said that any U.S. attempt to compel countries to use the dollar would backfire.

The BRICS grouping includes Brazil, Russia, India, China, and South Africa and a few other countries that joined in the past couple of year. The grouping does not have a common currency, but long-running discussions on the subject have gained some momentum after the West imposed sanctions on Russia over the war in Ukraine.

"There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!," he said.

Trump posted his warning to the BRICS as Canada and Mexico await for his decision to follow through on a pledge to impose 25% tariffs on the United States' North American trading partner from Feb. 1.

Trump wants to use tariffs as a tool to get Mexico and Canada to help stem the flow of illegal drugs into the United States, particularly the deadly opioid fentanyl, and also migrants crossing illegally into the U.S.

Dollar dominance — the outsized role of the U.S. dollar in the world economy — has strengthened of late, thanks to the robust U.S. economy, tighter monetary policy and heightened geopolitical risks, even as economic fragmentation has boosted a push by BRICS countries to shift away from the dollar into other currencies.

A study by the Atlantic Council's GeoEconomics Center last year showed that the U.S. dollar remains the world's primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar.

https://www.reuters.com/markets/currencies/trump-repeats-tariffs-threat-dissuade-brics-nations-replacing-us-dollar-2025-01-31/

MEANWHILE:

Canadian Prime Minister Justin Trudeau has announced retaliatory 25% tariffs on American goods, hours after US President Donald Trump imposed sweeping trade restrictions on Canadian imports. 

“Tonight, I am announcing Canada will be responding to the US trade action with 25% trade tariffs against $155 billion worth of American goods,”Trudeau said at a news conference on Saturday.

The first wave of tariffs, covering $30 billion worth of US goods, will take effect on Tuesday, with broader measures following in 21 days to allow Canadian companies to adjust.

“These tariffs will be far-reaching and include everyday items,” the Canadian leader said, listing alcohol, fruits, vegetables, clothing, and shoes. In addition to direct tariffs, Ottawa is exploring “several non-tariff measures,” which could include restrictions on critical minerals, energy procurement, and other trade partnerships. 

“We will stand strong for Canada,” Trudeau said. “We will stand strong to ensure our countries continue to be the best neighbors in the world,” he added, urging citizens to support domestic businesses.

Trump’s 25% tariffs on nearly all Canadian goods were announced earlier on Saturday, with the White House citing concerns over illegal drug trafficking and immigration.

The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency,” a White House fact sheet read. “President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”

The US president claimed that Canada has played “a central role” in America’s fentanyl crisis and failed to “devote sufficient attention and resources” to combat the flow of illicit drugs.

In an effort to avert the tariffs, Ottawa introduced a $1.3 billion spending plan aimed at strengthening border surveillance and tackling drug trafficking. Trump said on Friday, however, that there is “nothing Canada can do right now” to avoid the new tariffs. 

Economists warn that the escalating trade dispute could lead to rising consumer prices and economic disruptions in both countries.

https://www.rt.com/news/612038-canada-strikes-back-with-tariffs/

Mexican President Claudia Sheinbaum has accused the US of fueling cartel violence by allowing powerful firearms to flow south, pushing back against President Donald Trump’s claims that Mexico is failing to stop illegal migration and drug trafficking.

Sheinbaum’s comments late Saturday came as she ordered retaliatory tariffs on US goods in response to Trump’s sweeping 25% duties on imports from Mexico and Canada.

“We categorically reject the slander made by the White House against the Government of Mexico, accusing it of having alliances with criminal organizations,” Sheinbaum wrote in a fiery post on X. “If such an alliance exists anywhere, it is in the armories of the United States that sell high-powered weapons to these criminal groups – as demonstrated by the US Department of Justice itself.”

Her remarks apparetly referred to a recent report by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which indicated that a significant number of military-grade firearms used by Mexican cartels originate in the US.

Sheinbaum also touted her administration’s anti-narcotics efforts, stating that in just four months, Mexican security forces have seized over 40 tons of drugs, including 20 million doses of fentanyl, and arrested more than 10,000 people linked to organized crime.

She criticized the US government’s approach to the drug crisis, arguing that if Washington were serious about combating drug abuse, it would “start a massive campaign to prevent the consumption of these drugs and take care of its young people, as we have done in Mexico.”

Trump’s new tariffs, set to take effect on February 4, impose a 25% duty on goods from Mexico and Canada and a 10% duty on imports from China. The Trump administration has justified these measures by citing concerns over illegal immigration and drug trafficking, particularly fentanyl entering the US.

In response, Sheinbaum has instructed the Ministry of Economy to “implement the Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.” While details have not been disclosed, sources indicate that Mexico aims to impose measures targeting key US industries, particularly agriculture, while seeking to avoid further escalation.

The Mexican leader called for bilateral cooperation to address the drug crisis.

“If the United States truly wants to combat the criminal groups that traffic drugs and generate violence, we must work together comprehensively,” she said. “But always under the principles of shared responsibility, mutual trust, collaboration, and, above all, respect for sovereignty, which is non-negotiable.”

https://www.rt.com/news/612036-mexico-trump-tariffs-retaliation

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