US President Donald Trump has issued a strong warning to BRICS nations, threatening them with 100% tariffs on their exports if they attempt to reduce reliance on the US dollar in global trade.
In a fiery statement, Trump made it clear that the dominance of the US dollar must remain intact. “The idea that the BRICS countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” he wrote.
“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. There is no chance that BRICS will replace the US Dollar in international trade, or anywhere else, and any country that tries should say hello to tariffs and goodbye to America!”
The BRICS alliance—consisting of Brazil, Russia, India, China, and South Africa—has been actively exploring ways to reduce dependency on the US dollar for years. Their efforts have intensified, particularly after Western sanctions were imposed on Russia following its 2022 invasion of Ukraine.
In recent years, BRICS has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, forming what is now referred to as BRICS+. While the group does not yet have a common currency, its members have increasingly promoted trade in their local currencies.
At the 15th BRICS Summit in 2023, Russian President Vladimir Putin openly called for de-dollarization, emphasizing the need for expanded trade settlements in national currencies and enhanced cooperation between BRICS banks.
This momentum continued at the June 2024 BRICS foreign ministers’ meeting in Russia, where discussions on reducing reliance on the US dollar gained further traction.
Despite these efforts, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Center last year found that neither the euro nor the BRICS+ nations had significantly reduced global dependence on the dollar.
Trump’s latest threats align with his long-standing approach to economic policy, using tariffs as a tool to exert pressure on other nations. He has consistently advocated for protectionist trade measures, arguing that they help bring manufacturing jobs back to the US.
His warning to BRICS comes amid his broader push for increased tariffs on multiple countries. Recently, he suggested imposing tariffs on Mexico and Canada, citing concerns over illegal immigration and drug trafficking, particularly fentanyl. He has also been critical of India’s trade policies, previously calling the country a “very big abuser.”
Trump believes that higher tariffs on foreign goods will lower taxes for American businesses and workers by encouraging domestic production. However, this approach has faced criticism from economists who warn that such policies could lead to higher costs for American consumers and businesses, especially those dependent on imported raw materials.