The president of the United States, Donald Trump, said on his Tweet on social networks on Monday morning: “I am pleased to announce that the tariff letters of the United States and/or agreements with several countries around the world, will be delivered from 12:00 pm (east time), on Monday, July 7. Thank you for your attention to this matter! Donald J. Trump, president of the United States.
However, Trump followed this with a warning, stating that “any country that aligns with BRICS anti -American policies, an additional 10%tariff will be charged. There will be no exceptions to this policy.”
Market reaction
The US dollar has received new offers after Trump’s warning against its main monetary rivals, with the US dollar index adding 0.10% in the day to 97.07, at the time of writing.
BRICS – Frequently Questions
BRICS is the acronym that designates the group of Brazil, Russia, India, China and South Africa. The name was created by the Goldman Economist Sachs Jim O’Neill in 2001, years before the alliance between these countries was formally established, to refer to a group of developing economies that predicted at that time that would lead the world economy in 2050. The block is seen as a counterweight to the G7, the group of developed economies formed by Canada, France, France, Germany, Germany, Italy, Italy, Italy United Kingdom and the United States.
BRICS are a block that aims to give voice to the so -called “global south.” The alliance usually has similar points of view in geopolitical and diplomatic matters, but still lacks a clear economic integration, since government systems and cultural divergences among its members are significant. Even so, celebrate annual summits at the highest level, coordinates multilateral policies and has launched initiatives such as the creation of a joint development bank. In August 2023, the group announced that six other members were invited to join the block: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates.
According to data from the International Monetary Fund, the BRICS Alliance (not counting the six new invited members to join the group) represents 32% of the world economy measured in purchasing power parity to April 2023, compared to 30% of the G7 group.
There are more and more speculation about the possibility that the BRICS alliance creates a currency backed by some type of raw material, such as gold. The proposal is to reduce the use of the US dollar, the dominant currency, in cross -border economic exchanges. At the 2023 BRICS Summit, the group highlighted the importance of promoting the use of local currencies in international trade and financial transactions among the members of the block, as well as with its commercial partners. The group also commissioned the finance ministers and the governors of the central banks “to consider the issue of local currencies, payment instruments and platforms” for this purpose. Although the block disdaining strategy seems clear, the creation and implementation of a new currency seems to have a long way to go.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
