Trump's 100% tariff threat on BRICS ‘an overreaction’
An economist has described Donald Trump's threats to impose 100% tariffs on BRICS countries as an overreaction.
The president-elect warned that the members of the group, which include South Africa, would face punishment if they tried to replace the dollar as global reserve currency.
At the BRICS summit in Russia last month, the countries discussed boosting non-dollar transactions and strengthening local currencies.
Economist Azar Jammine says even if the BRICS countries pursue a new currency, it will have little detrimental effect on the US economy.
READ: Trump threatens 100% tariff on BRICS countries over currency
"If you look at the level of reserves held by most countries, 59% of them are in US dollars and another 20% in Euros and it's going to take a long time for the American economy to decline in size, whether to the risk of the world to the point that is sufficient to enable and justify moving to a different currency base."
President Cyril Ramaphosa has responded to Trump's warning saying that South Africa will facilitate diplomatic talks with the incoming president.
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