Trump threatens 100 percent tariffs on BRICS as former RBI chief questions legality of sanctions

Donald Trump has threatened to impose 100 percent tariffs on BRICS countries if they move away from the US dollar. Former RBI Governor Duvvuri Subbarao questioned whether US law allows such sanctions and noted internal differences within BRICS regarding a common currency. BRICS, which includes India, Russia, China, and Brazil, has discussed alternatives to the dollar, but Subbarao believes these efforts face significant political and economic challenges. He emphasized that a common currency would limit member countries' monetary policy autonomy. Subbarao also highlighted the high costs for China and India in moving away from the dollar. He noted that China has made progress in internationalizing its currency, while India still relies heavily on the US dollar for trade and investment.