False alarm

There is no real threat to the dollar

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Both the allies and adversaries of the United States (US) are preparing to deal with the second Donald Trump presidency. There are clear indications that his second term could be more unpredictable and potentially more disruptive to the existing global order than the first, and India will not remain immune to that. The relevant departments in the government are reported to be reviewing India's trade position with the US and preparing for potential problems. While there is a strong case for tariff reduction, India must be prepared to engage with the US establishment more actively to present its position. Intriguingly, Mr Trump recently threatened the BRICS countries with a 100 per cent tariff if they created a BRICS currency or backed any other currency to replace the dollar. Earlier a grouping of Brazil, Russia, India, China, and South Africa, BRICS has expanded to include other countries. While it is unclear what prompted the comment, it did create volatility in the currency market. The merits of the threat are thus