Former US President Donald Trump issued a warning to BRICS nations, threatening 100 percent tariffs on their exports if they attempt to replace the US dollar as the dominant currency in international trade.
Trump has repeatedly voiced his opposition to de-dollarization, warning that BRICS countries must maintain the US dollar’s role in global trade or face economic consequences. He stated, “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” adding that countries attempting to replace the US dollar would face 100% tariffs and be barred from the US economy.
This statement mirrors a similar post he made in November 2024, shortly after winning the presidential election.
The BRICS group – Brazil, Russia, India, China, and South Africa – has been exploring ways to reduce reliance on the US dollar for years. This collaboration has intensified since Western sanctions were imposed on Russia following its invasion of Ukraine. BRICS has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
While BRICS+ doesn’t have a common currency, its members have promoted trade using their local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin advocated for de-dollarization, urging increased settlements in national currencies and enhanced inter-bank cooperation.
This push gained momentum at the June 2024 BRICS foreign ministers’ meeting in Russia, where member states supported using local currencies in bilateral and multilateral trade.
Despite concerns over de-dollarization, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Center last year indicated that neither the euro nor BRICS+ nations had significantly reduced global dollar reliance.
Trump’s threats aim to maintain US dollar dominance. His use of tariffs as leverage is consistent with his past actions. These threats against BRICS+ follow his recent attempts to impose tariffs on Mexico and Canada, major US trading partners, citing concerns about illegal immigration and drug trafficking.
During his campaign, Trump criticized India’s trade policies and has now extended similar rhetoric to other BRICS+ members. He has argued that tariffs on other countries would lower taxes for American businesses and workers, encouraging domestic manufacturing.
However, this approach has faced skepticism. Economists warn that tariffs could increase costs for American consumers and businesses, especially those reliant on imported raw materials.
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