Trump’s 100% tariff threat unrealistic, India must focus on local currency trading: GTRI

US President-elect Donald Trump’s statement to BRICS countries to impose 100% customs duties if the group would replace the US dollar is unrealistic, and India should focus on developing a workable local currency trading system, think tank GTRI said Sunday.

It said that the tariffs of this scale would harm the American consumers only as it would push prices on imports, disrupt global trade, and risk retaliation from key trading partners.

“Trump’s threat to impose 100% tariffs on countries adopting a BRICS currency is unrealistic and more symbolic than practical. For India, the prudent approach is to focus on making local currency trading workable by establishing a transparent and open currency exchange,” said

GTRI Founder Ajay Srivastava.

Emphasising that it is the actions of the US that have pushed many countries to seek alternatives to the US dollar, GTRI said: “The US has a history of leveraging its influence over global financial systems, such as the SWIFT network, to impose unilateral sanctions”.

India’s best interests lie neither in the domination of the US dollar nor in fully adopting a BRICS currency at this stage, Srivastava noted, adding that no single country, including the US, can unilaterally dictate global economic policies without facing repercussions.