Trump threatens 100 percent tariffs on BRICS countries over dollar use, former RBI chief questions legality

President-elect 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 the legality and feasibility of this threat, noting internal divisions within BRICS. Subbarao highlighted that BRICS, which includes India, Russia, China, and Brazil, faces significant political and economic challenges in creating a common currency. He stated that the idea of de-dollarization is complicated by member countries' reluctance to give up monetary policy control. He also pointed out that while China has made strides in internationalizing its currency, India still relies heavily on the US dollar for trade and investment. Subbarao emphasized that India has a long way to go before the rupee can be considered an international currency.