BRICS vs. The Dollar: Why Trump’s Threatened 100% Tariff Is Making Headlines

So, President-elect Donald Trump recently decided to go all-in on the global economic poker table, threatening to slap 100% tariffs on the BRICS nations if they dare mess with the U.S. dollar. That’s right—Trump took to Truth Social (because, of course) to essentially say, "You come for the dollar, you deal with me." Let’s break this down in a way that’s as bold and colorful as the man himself.

What’s All The Fuss About?

Here’s the deal: BRICS (Brazil, Russia, India, China, South Africa, plus a few new members) have been flirting with the idea of creating their own currency to reduce their reliance on the dollar. Why? Because, according to Russia's President Vladimir Putin, the dollar is being used as a "weapon." Putin must have missed the memo that money has always been a weapon—ask anyone who’s tried to pay rent in Los Angeles.

The BRICS nations make up 40% of the world’s population and about 25% of global GDP. They’ve been toying with the idea of a new currency for years, but so far, it’s just that—talk. However, Trump isn’t here for idle chatter. The moment whispers of a BRICS currency got louder, he fired off a tariff threat faster than he launches a golf ball off the tee.

Trump’s Warning: “No Currency for You!”

On November 30, Trump threw down the gauntlet:

“We require a commitment from these 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…”

Translation: “Play nice with the dollar, or kiss your exports to the U.S. goodbye.” This includes everything from Brazilian coffee to Chinese electronics, Indian textiles, and South African minerals.

But what does this tariff threat actually mean? Is it genius-level negotiating or just another episode of The Art of the Tariff Deal? Let’s find out.

Can BRICS Really Ditch The Dollar?

Spoiler alert: Not anytime soon. Here’s why:

• The Dollar’s Dominance: The U.S. dollar represents 58% of global foreign reserves and is used in most international trade. Even commodities like oil and gold are priced in dollars.
• Trust Issues: If BRICS creates a currency, it would need to convince the world it’s stable, reliable, and worth using. Considering their internal political and economic tensions (looking at you, China and India), that’s a tall order.
• South Africa’s Cold Feet: South Africa already said there are no plans for a BRICS currency. Ouch.

It’s like BRICS is a band where everyone wants to be the lead singer, but no one can agree on the setlist. Sure, they can talk about recording an album, but don’t expect to see it on Spotify anytime soon.

What Would 100% Tariffs Mean?

If Trump follows through with his threat, here’s how it could play out:

For BRICS Nations

• Major Economic Pain: Trade with the U.S. is a big deal for BRICS.
  • China: The U.S. imported $536 billion worth of goods from China in 2022.
  • India: U.S.-India trade hit $191 billion the same year.
  • Brazil: America’s favorite coffee beans? Yeah, they come from Brazil.

A 100% tariff would cost BRICS nations 10-15% of their GDP, which is like losing your biggest client overnight.

For U.S. Consumers

• Inflation Galore: That Brazilian coffee? More expensive. Your iPhone? More expensive. Even that random gadget you bought on Amazon? Yep, more expensive.
• Supply Chain Messes: Tariffs would disrupt global supply chains, making everyday goods harder to get—and pricier when you do find them.

For Trump’s Legacy

Critics argue this move makes the U.S. look scared of competition. Instead of projecting confidence in the dollar, it might actually encourage countries to diversify away from it. Oops.

Why BRICS Can’t Agree On Anything (Except Being Mad At The Dollar)

Let’s be real: The BRICS nations don’t always get along. China and India have border disputes, Russia is busy with its geopolitical drama, and South Africa is over here saying, “Wait, what currency?” The group is like a dysfunctional family at Thanksgiving—united in complaining about the turkey (a.k.a. the dollar), but fighting over everything else.

What’s Trump Thinking?

Trump’s tariff threat is classic Trump: big, bold, and headline-grabbing. He’s aiming to protect the dollar’s dominance while flexing America’s economic muscles. But here’s the catch:

• It’s a Double-Edged Sword: Tariffs hurt BRICS, sure, but they also hurt American consumers and businesses.
• The Long Game: Forcing countries to stick with the dollar by threatening tariffs could backfire, making the dollar look less like a global asset and more like a weapon of coercion.

The Global Bottom Line

BRICS creating their own currency is more of a pipe dream than a real threat—for now. Trump’s tariff threats might slow them down, but it could also spark unintended consequences, like pushing more countries to explore alternatives to the dollar.

So, could BRICS pull this off? Not likely anytime soon. But Trump’s reaction has definitely added some drama to the global stage. For now, the dollar remains king, but the world is watching closely.

BRICS, Trump, And California Real Estate: What’s The Connection?

The global drama surrounding BRICS’ potential new currency and President-elect Trump’s fiery 100% tariff threats may feel like issues for Wall Street and foreign diplomats, but they could hit home in a very real way. California’s real estate market, from existing housing to new construction, could see ripple effects. Let’s explore how this geopolitical chess match could play out on California’s turf.

1. Construction Costs Go Through The Roof

California’s builders rely heavily on imports from BRICS nations:

• Steel from China for infrastructure.
• Lumber from Brazil for framing homes.
• Minerals from South Africa for wiring, plumbing, and more.

A 100% tariff would double these costs. Builders would either pass the costs onto buyers or halt projects entirely. So, your dream home? It might come with a nightmare price tag.

2. Rising Mortgage Rates Hit Buyers Hard

Inflation fueled by tariffs would likely push the Federal Reserve to raise interest rates.

• Current Mortgage Rates: About 7%.
• Potential Spike: Rates could hit 8% or higher.

For buyers, this means higher monthly payments—enough to price many out of California’s already steep market. Sellers would feel the pinch too, as fewer buyers mean less demand.

3. Affordable Housing Development Slows

California desperately needs affordable housing, but rising costs could derail those plans.

• Projects aimed at low-income buyers could become financially unfeasible.
• Developers might focus on luxury homes, where they can offset costs with higher profits, leaving middle-income buyers out in the cold.

4. Labor Shortages Delay Projects

California’s construction industry relies on immigrant workers, many of whom come from BRICS nations or neighboring countries affected by U.S. trade policies. Stricter trade and immigration rules could worsen labor shortages, delaying projects and driving up wages.

5. Foreign Buyers Could Flock To California

One silver lining? Global instability often pushes wealthy investors to park their money in U.S. assets. California’s luxury market—think Beverly Hills, Malibu, and San Francisco—might see increased demand from international buyers looking for a safe haven.

Share with a friend who’s obsessed with politics, global economics, or California real estate—they’ll thank you later!