Trump's threat of 100% tariffs on countries adopting a BRICS currency is unrealistic

Over past few years some BRICS members, in particular Russia and China, are seeking an alternative to US dollar or creating their own BRICS currency

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NEW DELHI: The warning of US President-elect Donald Trump to BRICS countries to impose 100 per cent customs duties if the BRICS group would replace the US dollar is unrealistic, and India should focus on developing a workable local currency trading system, think tank GTRI said on Sunday.

BRICS, formed in 2009, is the only major international group of which the US is not a part. Its other members are South Africa, Iran, Egypt, Ethiopia, and the UAE. Over the past few years a few of its member countries, in particular Russia and China, are seeking an alternative to the US dollar or creating their own BRICS currency. India has so far not been part of the move. On Saturday, Trump warned BRICS nations against such a move.

The Global Trade Research Initiative (GTRI) said that tariffs of this scale would harm the US consumers only as it would push prices on imports, disrupt global trade, and risk retaliation from key trading partners.