On December 6, 2024, South African Airways announced the cancellation of approximately 60% of its flights due to a strike by pilots demanding higher wages. The airline's interim CEO, John Lamola, warned that prolonged disruptions could jeopardize the airline's financial recovery.
In a related geopolitical development, former U.S. President Donald Trump, recently re-elected, issued a warning of imposing 100% tariffs on BRICS nations if they proceed with plans to introduce a new currency to challenge the U.S. dollar. The BRICS group, comprising Brazil, Russia, India, China, and South Africa, seeks to reduce reliance on the dollar, which dominates global trade.
Trump's comments come amid rising tensions regarding the dollar's role in international finance, especially after the U.S. imposed sanctions on Russia following its invasion of Ukraine. The BRICS countries have expressed concerns over the U.S. using the dollar as a political tool.
The discussion around a shared BRICS currency has gained momentum since the financial crisis of 2008-09, but significant challenges remain, including differing political and economic systems among member nations. Recent statements from South African officials clarified that there are currently no concrete plans for a BRICS currency.
Trump's tariff threat could strain relations between the U.S. and some of the world's fastest-growing economies, potentially leading to retaliatory measures. His administration's stance marks a shift from previous policies aimed at weakening the dollar to boost exports.