The US can't reduce its trade deficit and increase the global dominance of the dollar at the same time, said an economist.

The dollar was rising after U.S. President-elect Donald Trump threatened to impose 100% tariffs against so-called BRICS countries if they create a new currency to rival the dollar. This alliance includes Brazil,

President-elect Trump warned nations to forego efforts to adopt a new currency on Saturday by threatening to impose a 100 percent tariff on countries that try to undervalue the U.S. dollar. “We require a commitment from these Countries that they will neither create a new BRICS Currency,

Trudeau flew to Florida on Friday evening and had dinner with Trump at his Mar-a-Lago residence, days after Republican Trump had pledged to impose tariffs on Canadian and Mexican imports after he is sworn in as president in January. That pledge has raised fears of a trade war between the U.S. and two of its biggest trading partners.

While the president-elect says he will impose a 25 percent tariff on everything Canada exports, Trudeau remains confident about forestalling that outcome.