New Delhi: US President Donald Trump has issued a strong warning to BRICS nations, threatening 100% tariffs on their exports if they attempt to replace the US dollar as the dominant currency in international trade.
Trump, who has consistently opposed de-dollarisation, declared that BRICS nations must uphold the dollar’s role in global commerce or face economic repercussions.
Trump’s Ultimatum to BRICS
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” Trump wrote on social media.
He further warned:
“We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency nor back any other currency to replace the mighty US Dollar. Otherwise, they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy. They can go find another sucker nation!”
Trump’s latest statement closely mirrors a similar warning from November 30, 2024, shortly after his presidential election victory.
BRICS’ Push for De-Dollarisation
The BRICS bloc—Brazil, Russia, India, China, and South Africa—has been exploring ways to reduce dependency on the US dollar for years. Following Western sanctions on Russia, the economic collaboration has only strengthened, and BRICS expanded in 2024 to include Egypt, Ethiopia, Indonesia, Iran, and the UAE.
Although BRICS does not have a common currency, its members have been promoting trade in local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin urged member nations to expand settlements in national currencies. The June 2024 BRICS foreign ministers’ meeting in Russia further reinforced this effort.
Can BRICS Challenge the Dollar?
Despite these moves, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Center found that neither the euro nor BRICS currencies had significantly reduced global reliance on the US dollar.
Trump’s Tariff Strategy
Trump has long used tariffs as an economic weapon. His latest warning to BRICS follows his push for tariffs on Mexico and Canada, aimed at tackling illegal immigration and drug trafficking.
During his campaign, Trump had accused India of being a “very big abuser” of trade policies, and his latest rhetoric suggests a more aggressive trade stance against BRICS nations.
Economic Concerns Over Tariffs
While Trump argues that higher tariffs could benefit the US economy by bringing factories back to America, economists warn of potential consequences:
Higher costs for US consumers and businesses relying on imported materials.
Trade tensions with major global economies, potentially leading to retaliatory tariffs.
Increased uncertainty in global financial markets.
With BRICS nations pushing ahead with their de-dollarisation efforts, Trump’s threats signal potential economic confrontations in the coming years.
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