Donald Trump Warns BRICS Against Replacing U.S. Dollar, Threatens 100% Tariffs
Former U.S. President Donald Trump has issued a strong warning to BRICS member nations, cautioning them against attempts to replace the U.S. dollar as a global reserve currency. Reiterating a threat he made shortly after winning the November presidential elections, Trump vowed to impose 100% tariffs on any country backing an alternative to the dollar.
Trump’s Warning to BRICS on Currency Replacement
"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 U.S. Dollar. Otherwise, they will face 100% tariffs," Trump stated on Truth Social. The message closely mirrored a previous post he made on November 30.
Russia responded at the time by warning that any U.S. attempt to force countries into continued dollar reliance would backfire.
BRICS and the Push for De-Dollarization
BRICS—comprising Brazil, Russia, India, China, and South Africa—has been exploring alternatives to the U.S. dollar, especially after Western sanctions against Russia due to the Ukraine conflict. The bloc has expanded in recent years, adding Egypt, Ethiopia, Iran, and the UAE in 2023, with Indonesia joining earlier this month.
Despite ongoing discussions, BRICS has not yet launched a common currency. However, economic fragmentation and geopolitical tensions have fueled efforts to reduce global dependence on the dollar.
Trump: BRICS Currency Will Not Replace the Dollar
"There is no chance that BRICS will replace the U.S. Dollar in international trade or anywhere else," Trump emphasized. "Any country that tries should say hello to tariffs and goodbye to America!"
U.S. Trade Policies and Global Dollar Dominance
Trump's latest warning comes as Canada and Mexico await his decision on a proposed 25% tariff set to take effect on February 1. The move is part of his broader strategy to combat illegal drug trafficking—particularly fentanyl—and unauthorized migration into the U.S.
Despite growing opposition to the dollar’s dominance, recent reports suggest its global influence remains strong. A study by the Atlantic Council's GeoEconomics Center indicates that the U.S. dollar continues to be the world's primary reserve currency, with neither the euro nor BRICS currencies making significant inroads.
Origins and Expansion of BRICS
The term "BRIC" was first coined in 2001 by then-Goldman Sachs economist Jim O’Neill, highlighting the economic potential of Brazil, Russia, India, and China. The group was formally established in 2009 as a counterweight to Western financial influence. South Africa joined in 2010, officially transforming the bloc into BRICS.
As BRICS continues its expansion and discussions on financial alternatives intensify, Trump's latest remarks underscore the ongoing geopolitical battle over currency dominance and global trade policies.
Conclusion
With Trump’s reassertion of aggressive trade policies, the future of BRICS' de-dollarization efforts remains uncertain. As the global economy navigates shifting alliances and economic policies, the U.S. dollar’s role in international trade remains a central point of contention.