“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 U.S. Dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy,” said President Donald Trump.
Trump has warned the BRICS nations, threatening 100 percent tariffs on their exports if they attempt to replace the “mighty US dollar” as the dominant currency in international trade.
US President Donald J Trump posts, “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS Currency, nor… pic.twitter.com/6LUkipwQ61
— ANI (@ANI) January 31, 2025
Taking to his social media account, Trump wrote, “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. 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 U.S. Dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy. They can go find another sucker nation. There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!”
Not The First Time…
During a signing ceremony at the Oval Office, Trump reiterated his position and directly warned BRICS countries against abandoning the dollar. He said, “As a BRICS nation… they’ll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they’ll give it up immediately.”
He also rejected the idea that the US was vulnerable, referencing a statement from former President Joe Biden. Trump insisted that the US holds leverage over BRICS countries, stating, “It’s not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, No, we have them over a barrel. And there’s no way they’re going to be able to do that.”
Trump had made similar warnings before assuming office as the 47th President of the United States, stating that BRICS nations would face 100 per cent tariffs on imports to the US if they launched a new currency. His latest remarks reinforce his administration’s commitment to protecting the US dollar’s dominance in global trade.
Trump posted his warning to the BRICS as Canada and Mexico await his decision to follow through on a pledge to impose 25% tariffs on the United States’ North American trading partner from Feb. 1.
Trump wants to use tariffs as a tool to get Mexico and Canada to help stem the flow of illegal drugs into the United States, particularly the deadly opioid fentanyl, and also migrants crossing illegally into the U.S.
BRICS Grouping Consists Of
The BRICS grouping includes Brazil, Russia, India, China, South Africa, and others that joined in the past couple of years. The grouping does not have a common currency, but long-running discussions on the subject gained some momentum after the West imposed sanctions on Russia over the war in Ukraine.
When Did The Idea Of De-Dollarisation Begin?
BRICS nations have been actively working to reduce dollar dependence. During the plenary session of the 15th BRICS Summit in 2023, Russian President Vladimir Putin called for de-dollarisation, stating that “BRICS countries must expand settlements in national currencies and enhance cooperation between banks.”
In June 2024, BRICS foreign ministers met in Nizhny Novgorod, Russia, advocating for the “enhanced use of local currencies in bilateral and multilateral trades and financial transactions between the member countries.”
India’s Role In BRICS
India is critical in navigating the complex landscape within the BRICS, balancing its relationships with major powers. Through this membership, India has sought to safeguard its national interests and advance its economic and cultural objectives by engaging in strategic partnerships with new BRICS members.
