The BRICS alliance is worried that President-elect Donald Trump could impose a 100% tariff on semiconductor supplies entering the US. Trump recently warned the alliance of dire consequences if they move away from the US dollar for trade and transactions. The 47th President wants the US dollar to remain supreme and not fall prey to the ongoing global de-dollarization agenda.
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The latest report shows that Trump plans to impose a 100% tariff on semiconductor supplies making its way to the US if BRICS does not abandon the de-dollarization initiative. The new BRICS ‘partner country’ Malaysia stated that Trump is eyeing the semiconductors supplies to take on the alliance. Read here to know the sectors that will be affected if BRICS ditches the US dollar for trade.
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BRICS: Trump to Weaponize Semiconductor Supplies?
Malaysian Trade & Industry Minister, Tengku Zafrul Aziz, said that BRICS is aware of Trump’s upcoming semiconductor tariff imposition. The Minister warned that any step to impose a 100% tariff will affect both sides of the aisle and not just the BRICS alliance. He explained that the burden of tariffs will be placed on the shoulders of the American firms who consume the supplies.
Also Read: BRICS Countries React to Trump’s 100% Tariff Threats
“Any step to impose a 100% tariff will affect both sides that depend on each other in the strive to prevent failures in the global chain of (semiconductor) supplies,” Tengku Zafrul Aziz said. He added that the BRICS bloc, including Malaysia and the US are interconnected through trade and supplies of essential commodities.
BRICS member China is among the top suppliers of semiconductor and remains a challenger to the US in the domain. Malaysia also provides strength to the sector by working on back-end manufacturing, cutting-edge design, and advanced packaging. It has had a hold in the sector for five decades and is worried Trump’s tariffs could disrupt the industry.
