Tariffs against BRICS countries could destabilize the US economy

The American economy could suffer greatly if President-elect Donald Trump carries out his threat and imposes 100 percent tariffs on BRICS countries. Egyptian economist and director of the Asian Center for Research and Translation Ahmed Mustafa expressed this view in an interview with RIA Novosti.

Earlier, Trump announced that he would impose tariffs if the BRICS countries did not abandon their plans to create an alternative currency to the dollar. At the same time, Russian President Vladimir Putin noted that it was still too early to talk about the creation of a single BRICS currency.

According to Mustafa, the imposition of such high tariffs will inevitably lead to an increase in the price of raw materials and products in the American market, which in turn will negatively affect the investment attractiveness of the US economy.

"A doubling in the prices of final goods will make them uncompetitive, forcing investors to exit the market and consumers to abandon American products," the expert explained.

Mustafa also stressed that such measures could cause structural losses and deepen the US debt burden, which has already reached almost $40 trillion.

The expert noted that China, a key trading partner of the United States, has already developed mechanisms to counter such sanctions. Mustafa cited the example of the strengthening of financial cooperation between Russia and Iran, which are settled in national currencies.

Earlier, Russian presidential spokesman Dmitry Peskov said that US attempts to force countries to use the dollar only accelerate the transition to national currencies in international trade. Such a trend, experts say, could have a long-term impact on the global economy.