Trump's Sanctions on BRICS: The End of Cheap Coffee in the US?

If the USA imposes 100% sanctions on the BRICS nations, then the price of a cup of coffee in the USA will also increase by 100% along with many other essential products.

Coffee is just one example. In this article, I will explain you how the USA will hit its own feet with an axe by imposing sanctions.

In previous tenure too, Donald Trump was seen giving strange statements at the beginning of his tenure. Generally, political parties win by pleasing the public and taking their votes. Giving a political statement is one thing and running the country is another.

When the president of a powerful country like the United States takes office, after that he is given a briefing by his administration, agency and other departments. Later the president takes his decision keeping in mind his national interest.

This tweet of Donald Trump seems more emotional to me. Along with emotion, I can also see the fear within him. He must either know or have had a briefing on how the BRICS members are gradually increasing their power in the world. How the increasing power of the BRICS members is going to be a threat to the dollar. So what happened is, he must have tweeted out of emotion. Well this is just my speculation.

But yes, Donald Trump's arrogance is visible in this tweet. Along with arrogance, the language is very informal. I can even see his fear and frustration clearly and in a way it is a good thing. I think it is okay and also important for the USA to be afraid of BRICS.

The USA doesn’t own and control the world. He is talking like an imperialist. Today's world is not run by any imperialist. Every country has its own sovereign right. Every country is free to make decisions according to its national interest.

If BRICS countries are pressured to use the US dollar, de-dollarization will happen even faster. The more pressure you apply, the more it will force the BRICS countries to find alternatives to the dollar. The dollar's hegemony will quickly be replaced by a more balanced multipolar world order. Nothing can stop the emergence of a level playing field in this new multipolar world order.

If you really want to remove the threats on US dollar than do the following

• Make the dollar attractive to the world.
• Stop secondary sanctions.
• Return confiscated sovereign funds.
• Open Swift to everyone without restrictions.
• Make the dollar usable by everyone.

To be honest, changing the BRICS currency is not a matter of one day or one month or one year, it will take a lot of time. It is not that easy. But on the contrary, even the threat of the USA is not going to work.

Today the world is interdependent on each other. Today everyone is becoming increasingly dependent on other countries. Some want software, few countries need rice, few need technology, few need cheap pharmaceutical products, few need auto parts, few need tourists, I can put many such examples in front of you.

We are no longer in an era of empires. Today's era is called the Global Village.

If you do impose sanctions then whom will you impose them on? If you impose sanctions on everyone then with whom will you do trade? And after the sanctions will other countries sit idle? Other countries will also retaliate. When maximum countries impose tariffs in the name of retaliation, inflation will rise in the USA.

So according to me, if this is implemented as per Donald Trump's tweet, then it will backfire a lot for the USA. The USA is still dependent highly on other countries for many products, such as:

Tropical Crops

Crops grow in tropical climates such as Bananas, Coffee, Cocoa, Black Pepper, Tropical fruits such as mangoes, pineapples, and papayas, sourced from Central America and Southeast Asia.

Key imports include:

• Bananas - USA is the biggest importer of the world. It is mainly imported from Latin America.
• Coffee - Brazil, Cambodia, Vietnam and India. Imagine what would happen if these countries stop exporting or impose a 100% tariff on USA against retaliation.
• Cocoa - Ivory Coast and Ghana are the primary suppliers.
• Tropical fruits Mangoes, Pineapple and Papayas still come to the USA from Central America and South East Asian countries.
• Spices like vanilla and black pepper are imported mainly from Madagascar and India.

Sugar:

The domestic production of sugar is good but still it is 27% dependent on imports.

Tea:

Domestic production is next to nothing in the USA. It has to be completely dependent on India, Sri Lanka and China.

That is the reason I say if Donald Trump goes for a sanction or 100% tariff on BRICS nations, then their cup of coffee is going to be 100% more costly along with other essentials as well. Common citizen of the USA is going to suffer due to this sanction & tariff.

Pharmaceutical Products:

The USA is heavily dependent on India and China for Pharmaceutical products.

products, especially generic medicines. Here's a detailed breakdown:

1. Generic Drugs: India is the largest global supplier of generic medicines. These include common medications for chronic conditions like cardiovascular diseases, diabetes, and infections. Source: Marsh McLennan Source: Coalition For A Prosperous America
2. Cancer Treatments: The U.S. faces shortages of critical generic cancer drugs like cisplatin and carboplatin. These shortages are linked to reliance on foreign manufacturers, including those in India and China, and price-driven supply chain vulnerabilities Source: Coalition For A Prosperous America
3. Active Pharmaceutical Ingredients (APIs): India alone accounts for 48% of the active pharmaceutical ingredients (APIs) used in U.S. drugs, while China supplies about 13%These APIs are foundational to manufacturing a wide range of finished products Source: Marsh McLennan
4. Antibiotics and Antiviral Drugs: The U.S. is heavily dependent on imported antibiotics and antiviral medications, with India and China being the primary suppliers. This dependence became more evident during the COVID-19 pandemic when supply chain disruptions led to shortages Source: Coalition For A Prosperous America

Sometimes I also feel that this tweet of Donald Trump is just to make the voters happy for the time being. In India we call it "CHURAN".

Bricks don't need you! You need them!

Let me prove this by giving more insight economically

1. BRICS: 35% of worldwide GDP and 45% of world population (and this don’t include the 35 countries in the waiting list to join)
2. G7: 30% of GDP and 9% of the world population!
3. In yuan terms, two-way trade value between China and Russia stood at 1.69 trillion yuan ($235.90 billion) last year, up 32.7% year-on-year, the customs data showed.
4. Bilateral trade between India and Russia in local currency was 65.7 billion.
5. Iran-India bilateral trade increases by 21% YoY in November 2023 in local currency

100% tariffs on BRICS countries for moving away from the dollar would hurt Americans more than anyone else.

In the coming times you will see that many more countries will trade in local currencies. Gradually the value of the US dollar will decrease. There is no place for unipolar in the multipolar world.

I hope BRICS launches a currency soon, it will be good.

Let the game begin!

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