Donald Trump, the president-elect, has reignited international tensions with a stark warning to BRICS nations about their growing interest in creating a new currency to rival the US dollar. In a statement posted on his Truth Social platform, Trump threatened to impose 100% tariffs on any country involved in such an effort, sparking concerns of a looming trade war.
“The US economy won’t tolerate any attempt to replace the dollar. BRICS nations must commit to avoiding such efforts, or they’ll face steep tariffs and lose access to our market,” Trump said. “There’s no future for BRICS without America.”
This rhetoric comes as BRICS—originally comprised of Brazil, Russia, India, China, and South Africa, and now expanded to include Egypt, the UAE, Ethiopia, and Iran—considers reducing its reliance on the US dollar in international trade.
The idea of a BRICS currency has been gaining momentum, fueled by dissatisfaction with the US dollar’s dominance in global markets. Leaders like Russian President Vladimir Putin have called for alternative payment systems to limit the United States’ influence in global financial transactions, which they argue has been wielded as a political weapon.
However, not all BRICS nations agree on the path forward. While some members push for financial independence from the dollar, others fear economic backlash from the US and its Western allies, whose economies heavily depend on dollar-backed systems.
A 100% tariff on BRICS countries would drastically increase the cost of imported goods in the US, potentially driving up inflation while disrupting global trade. Key industries, including technology, manufacturing, and energy, could face severe supply chain challenges, creating uncertainty for businesses and consumers alike.
Global trade experts warn that such a policy could trigger retaliatory measures from BRICS nations, escalating tensions and sparking widespread economic instability.
While the US dollar remains the world’s leading reserve currency, discussions about de-dollarization are gaining traction. The BRICS group represents some of the world’s fastest-growing economies, and their collaboration could mark a significant shift in global financial power.
