‘Replace dollar, face 100% tariff’: Donald Trump’s threat to members of BRICS, which includes India
US President Donald Trump has recently reiterated a strong warning to BRICS nations—Brazil, Russia, India, China, and South Africa—regarding their efforts to move away from the US dollar as the dominant global currency. In a post on Truth Social, Trump threatened that any attempt by these countries to establish a new currency or support alternatives to the dollar would result in 100% tariffs on their exports to the United States. He emphasized that such actions would lead to significant economic consequences, stating, “They will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful US Economy”.
This warning aligns with Trump’s longstanding opposition to what he perceives as threats to the dollar’s supremacy in international trade. The BRICS coalition has been discussing ways to reduce reliance on the US dollar for several years, particularly in light of Western sanctions against Russia following its invasion of Ukraine. Discussions have included promoting trade in local currencies among member states.
Trump’s rhetoric reflects a broader concern within the US about the potential for BRICS nations to undermine the dollar’s status as the world’s primary reserve currency. He has characterized these nations as “seemingly hostile,” insisting that they must commit not to pursue any initiatives that could replace the dollar or face severe tariffs. His administration’s use of tariffs as a tool for economic leverage is not new; similar threats have been directed at other trading partners, including Mexico and Canada.
Economists warn that such tariffs could have adverse effects on American consumers and businesses, particularly those reliant on imported goods. The ongoing tensions highlight the delicate balance of power in global finance and trade as BRICS nations seek greater autonomy from US economic influence.
