Trump's US tariffs on BRICS reflect deeper fears of Chinese dominance

Trump using tariffs on BRICS countries as a red herring to stifle perceived influence of China

- SIPHELELE DLUDLA

INVESTORS in South Africa have cautioned that the US President Donald Trump was using tariffs on BRICS countries as a red herring to stifle the perceived dominance of China over the United States.

Trump last week announced that he was planning to slap a 10% tariff on imports from the BRICS economic group of emerging-market nations, including Brazil, Russia, India and China, along with a 50% duty on all copper imports and a possible 200% tax on pharmaceuticals.

The expanded BRICS+ now covers 43% of the world's population, 32% of the world’s land area, around 35% of global GDP and 20% of world exports.

Trump explained the BRICS tariff threat was being driven by a desire to protect the US dollar from potential threats to its dominance as the BRICS bloc looks to unseat the greenback as the world’s reserve currency.

Commentators indicate that the dynamics of global power shifts are increasingly influenced by economic alliances, and Trump's scepticism about BRICS appears to stem from a fear that any concerted effort to empower China could ultimately threaten the United States’ position at the pinnacle of global affairs.