Trump Warns BRICS Against Ditching the Dollar

 

President Donald Trump has once again criticized de-dollarization efforts, cautioning BRICS nations that abandoning the US dollar in global trade could lead to severe economic repercussions.

Trump Warns BRICS: 100% Tariffs if US Dollar Is Replaced

President Donald Trump on Friday cautioned BRICS nations against efforts to move away from the US dollar in international trade, threatening 100% tariffs on their exports if they attempt to introduce an alternative currency. Trump has consistently opposed de-dollarization, insisting that BRICS countries must uphold the dollar’s dominance or risk severe economic consequences.

"The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER," Trump wrote. "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, and should expect to say goodbye to selling into the wonderful US Economy. They can go find another sucker Nation. There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!"

Trump Repeats Warning as BRICS Pushes to Move Away from US Dollar

Donald Trump’s latest remarks closely mirror a statement he made on November 30, weeks after winning the 2024 presidential election.

For years, BRICS—comprising Brazil, Russia, India, China, and South Africa—has explored ways to reduce reliance on the US dollar. The group's economic cooperation has intensified since Western sanctions were imposed on Russia following its invasion of Ukraine. In recent years, BRICS has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

While BRICS+ has not established a common currency, its members have increasingly promoted trade in local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin explicitly called for de-dollarization, urging member nations to expand settlements in national currencies and strengthen banking cooperation. The movement gained further traction at the June 2024 BRICS foreign ministers’ meeting in Russia, where members advocated for the broader use of local currencies in trade.

Despite concerns over de-dollarization, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s Geo Economics Center last year found that neither the euro nor BRICS+ had meaningfully reduced global dependence on the dollar.

Trump’s latest warning comes as he seeks to maintain US economic dominance. His threat of 100% tariffs against BRICS+ nations aligns with his broader trade strategy, which has included pushing for tariffs on Mexico and Canada—America’s largest trading partners. The 78-year-old has argued that such measures are necessary to combat illegal immigration and drug trafficking, particularly fentanyl.

During his campaign, Trump labeled India a "very big abuser" of trade policies and has now extended similar rhetoric to other BRICS+ members. He maintains that higher tariffs on foreign countries will allow for lower taxes on American businesses and workers while incentivizing companies to bring manufacturing jobs back to the US. However, this strategy has faced skepticism. Economists caution that imposing tariffs could lead to higher costs for American consumers and businesses, especially in industries dependent on imported raw materials.