Former US President Donald Trump has issued a stern warning to BRICS nations against replacing the US dollar as a reserve currency, reiterating his threat of imposing 100% tariffs.
“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, or they will face 100% tariffs,” Trump stated on Thursday via Truth Social.
The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has long discussed alternatives to the US dollar, especially following Western sanctions on Russia over the Ukraine war. While BRICS does not yet have a common currency, recent geopolitical shifts have fueled renewed interest in de-dollarization.
“There is no chance that BRICS will replace the US dollar in international trade, or anywhere else,” Trump declared. “Any country that tries should say hello to tariffs and goodbye to America!”
Trade Battles and Tariff Plans
Trump’s warning comes as Canada and Mexico await his decision on a proposed 25% tariff set to take effect on February 1. He aims to use tariffs as leverage to pressure these nations into taking stronger action against illegal drug trafficking, particularly fentanyl, and unauthorized migration into the US.
“The idea that BRICS countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump asserted.
US Dollar Dominance Remains Firm
Despite de-dollarization efforts, the US dollar’s global influence remains strong, bolstered by the resilient US economy, tighter monetary policies, and rising geopolitical tensions. A study by the Atlantic Council’s GeoEconomics Center found that the US dollar continues to be the world’s primary reserve currency, with neither the euro nor BRICS alternatives significantly challenging its dominance.
The Evolution of BRICS
Originally coined as “BRIC” in 2001 by Goldman Sachs economist Jim O’Neill to highlight the economic potential of Brazil, Russia, India, and China, the bloc formally came together in 2009 to challenge Western-dominated global governance. South Africa joined in 2010, expanding the group into BRICS.
The group has since grown, adding Egypt, Ethiopia, Iran, and the UAE in 2023, with Indonesia becoming the latest member earlier this month.
