Washington | President Donald Trump has again warned that he will impose 100 per cent tariffs against countries of the BRICS bloc, of which India is a part, if they take any steps to replace the US dollar.
Trump, who took oath as the 47th president of the US on Monday, said, "If the BRICS nations want to do that, that's okay, but we're going to put at least a 100 per cent tariff on the business they do with the United States." They “have a 100 per cent tariff if they so much as even think” about reducing the use of the dollar in global trade, he added.
BRICS is an intergovernmental organisation of ten countries --Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
In December too, Trump warned BRICS nations against such a move.
“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 US dollar or, they will face 100 per cent tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump had warned.
External Affairs Minister S Jaishankar in December said India had never been for de-dollarisation and there was no proposal to have a BRICS currency.
Responding to a question on immigration, Trump on Monday said he is fine with legal immigration.
The nation will need more legal immigration as manufacturing is going to expand because of his tariff policies, Trump said.
“I'm fine with legal immigration. I like it. We need people, and I'm absolutely fine with it. We want to have it," he said.
Barcelona | US President Donald Trump has apparently confused Spain for a member of the BRICS bloc of developing economies, causing some head-scratching and jitters over possible tariffs in Madrid.
Spain is not in BRICS, whose initials stand for Brazil, Russia, India, China and South Africa. Spain is a member of NATO, along with the US, and of the European Union.
Trump erroneously said Spain was in BRICS when a journalist asked him about NATO countries like Spain which don't meet the NATO minimum of spending 2 per cent of economic output on defence. Spain ranked last in the 32-nation military alliance, estimated to spend 1.28 per cent on defence last year.
Trump started his answer by saying “Spain is very low,” referring to its defence expenditures, but quickly veered into speaking about the BRICS.
“They're a BRICS nation, Spain. Do you know what a BRICS nation is? You'll figure it out,” he told the reporter from the presidential desk in the Oval Office.
Trump repeated his threat to put costly tariffs on BRICS, saying “we are going to put at least a 100 per cent tariff on the business they do with the United States," part of his economic plans that would overturn decades of free trade consensus.
Spanish Education Minister Pilar Alegría, who acts as a spokeswoman for the government, said she wasn't sure why Trump made the comment.
“I don't know if the affirmation made by President Trump was the result of a mix-up or not, but I can confirm that Spain is not in BRICS,” Alegría told reporters Tuesday.
Spain has been a committed member of NATO for the past four decades, she added, and the Spanish government considers the US “a natural ally."
Spain is one of eight countries that failed to meet NATO's 2 per cent spending target last year. Trump has said he wants NATO members to reach 5 per cent spending on defence.