Over the weekend, Trump posted on his social media platform Truth Social in a spirited message that he intends to enforce 100% tariffs on BRICS+ nations and those aligned with this rapidly emerging economic bloc.
In response, Kremlin spokesman Dmitry Peskov said that the U.S. dollar is losing its appeal globally as a world reserve currency. “More and more countries are switching to the use of national currencies in their trade and foreign economic activities.”
He added that these protectionist measures would only further drive the trend of de-dollarization. “If the U.S. uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies (in international trade),” added Peskov. “The dollar is beginning to lose its appeal as a reserve currency for a number of countries.”
Chinese Foreign Ministry spokesperson Lin Jian also responded to Trump’s threats, saying, “BRICS, as an important platform for emerging markets and developing countries to cooperate, advocates openness and inclusiveness, win-win cooperation, non-confrontation and not targeting any third party,” the state-operated Global Times cited Lin as stating. “China is willing to work with BRICS partners to deepen pragmatic cooperation in various industries and make more contributions for sustained global economic growth,” she said.
However, in response to these threats, including prolonged tariffs and sanctions on China by the Biden administration’s semiconductor export controls, China has announced that they are banning exports of key dual-use items and minerals that are critical in military production. These materials include gallium, germanium, antimony and graphite, which are used in the production of semiconductors, bullets, nuclear weaponry, batteries, advanced electronics, and solar panels.
Business Insider noted: ‘The US is heavily dependent on China for gallium and antimony imports. While the US produces some germanium, China produces 98% of the world’s supply, according to the US Geological Survey. The government agency published research in November that said losing access to germanium and gallium imports could add up to “billions of dollars in losses” across the US economy, with the fallout concentrated most in the semiconductor industry.’
China had begun enforcing some of these restrictions in August, The WinePress reported at the time.
Trump has also threatened 25% tariffs on Canada and Mexico until the migration crisis is alleviated.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump said in a post on Truth Social. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long-simmering problem.”
In response, Mexican Economy Secretary Marcelo Ebrard stated on November 12th that they could enact their own tariffs against the U.S. if Trump elects to enforce these tariffs. “If you apply a 25% tariff to me, I have to react with tariffs, and I am your main importer, along with Canada,” he declared on Radio Fórmula. He argued the decision would have several repercussions for the U.S., inflation being one of them.
Apparently, after talks with Trump, Mexican President Claudia Sheinbaum announced that her government had already cracked down on two large migrant caravans headed for the southern border; and, according to a gleeful Fox News, this was accomplished because of Trump’s threat of tariffs.
Trump has lauded implementing steep tariffs throughout his campaign. Trump intends to slap China with new tariffs – on top of the ones the Biden-Harris administration is already levying – anywhere from 60% to 100%, including a 10% to 20% across-the-board tariff on imports from other countries, including European allies. “I can’t believe how many people are negative on tariffs that are actually smart,” Trump said earlier this year. “Man, is it good for negotiation. I’ve had guys, I’ve had countries that were potentially extremely hostile coming to me and saying, ‘Sir, please stop with the tariff stuff.’”
Trump has also threatened to slap nations attempting to de-dollarize with 100% tariffs on goods as well. “Many countries are leaving the dollar. They not going to leave the dollar with me. I’ll say, you leave the dollar, you’re not doing business with the United States because we’re going to put 100% tariff on your goods,” Trump said in September.
Trump has even threatened tractor manufacturer John Deere with 200% tariffs if the company decides to move some production to Mexico. The former President has also mulled the idea of a 100% tariff on all goods imported from Mexico.
AUTHOR COMMENTARY
And yet lost in the shuffle in all of this is that Americans WILL be forced to pay more as these measures are inflationary. The importer (the U.S.) pays the additional costs, not the exporter. We have already examined this before with a number of heads of major U.S. corporations saying they will pass on the additional costs incurred onto the consumer; which you can read about in this report I did last month: “A Number Of Companies Say They Will Pass Higher Prices Onto Consumers Because Of Trump’s Tariffs.”
Since then, more companies have said something similar. Walmart CFO John David Rainey said in an interview with Fox on November 20th: “Tariffs are going to be inflationary, there’s no disputing that.”
ClearValue Tax, Brian Kim, CPA, has an excellent video that simply explains how a tariff works. It’s a tax on importers that we will end up paying for, just as simple as that.
Furthermore, World Affairs in Context shared a similar sentiment and facts that I have tried to articulate a number of times before to readers and others should the conversation arise: we don’t have the infrastructure and manufacturing in place, period. Note: I recommend both of these channels for trustworthy financial information. They are honest and not looking to scam you.
Naysayers will immediately say that globalization is hurting us (and it is) and that we need to bring jobs back to the U.S. The problem is that this country simply does not have the infrastructure and manufacturing capacity, and one cannot simply flip a switch and turn this country into a production juggernaut again overnight.
The U.S. is a service and consumer-based economy. The country manufactures very little anymore. Only 11% of the nation’s GDP in 2023 was in manufacturing. This country is an importer nation.
I want better paying jobs in this country; I wish this country’s politicians and crooked corporations would not have sold us out for cheap labor elsewhere; but imposing self-defeating measures by drastically increasing protectionist measures will only make the problem worse. Free trade and competition allows for cheaper prices: this is monetary theory and economics 101.
I have warned for months that Trump’s policies will drastically increase the prices of everything, and now you are reading it straight from the heads of these different companies across different sectors. On top of this, one must also consider that he will be cutting the corporate tax rate from 21% to 15% while interest rates move lower. This will allow corporations to pay even less while we are forced to pay substantially more, thereby pushing stock prices higher.
Now, Kim has suggested that a lot of these tariffs might not happen based on Trump’s track record of backpedaling. This is also quite plausible. Trump is a paper tiger: he talks the talk but rarely walks the walk, contrary to his loyal MAGA fanbase that ignores everything he says and does.
But if these tariffs are implemented, prices WILL go higher, especially coupled with lowered interest rates and more quantitative easing.
In truth, by biblical definition, we are a nation run by fools; whether it’s Trump, Biden, Harris, Obama, Bush, etc.
Ecclesiastes 10:12 The words of a wise man’s mouth are gracious; but the lips of a fool will swallow up himself. [13] The beginning of the words of his mouth is foolishness: and the end of his talk is mischievous madness. [14] A fool also is full of words: a man cannot tell what shall be; and what shall be after him, who can tell him? [15] The labour of the foolish wearieth every one of them, because he knoweth not how to go to the city.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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