Khazin Explains Why Trump is Imposing Tariffs and What Currency Zone He Envisions

In the program "Relevant Interview," Russian economist and publicist Mikhail Khazin shared insights regarding Trump's imposition of tariffs and his ambition to establish a currency zone comprising Mexico, the United States, Canada, and Greenland.

"There was no economic model for Trump when he came to power, or, let’s say, it had not been articulated. Now it is somewhat clearer: it represents a return to the industrial production of the 1950s and 1960s. In this context, BRICS is not an adversarial structure for him," he emphasized.

Khazin noted, "There will never be a single BRICS currency that serves as an alternative to the dollar, as these countries have divergent economic strategies. On one hand, Trump states we cannot abandon the dollar; on the other hand, he insists we won't print dollars for others. Both positions cannot coexist."

The expert stressed the importance of focusing on actions rather than mere words. "Trump is imposing tariffs. This indicates his intention to create a currency zone free of tariffs. He is clearly targeting a currency zone that includes Mexico, the United States, Canada, and Greenland. The reason for including Greenland is also apparent: the country's natural resources are not yet capitalized, allowing for the potential printing of a colossal volume of securities, which could then be backed by money. Overall, his logic is clear and offers a direction; however, he currently lacks a comprehensive model for its implementation," the expert concluded.