United States President-elect Donald Trump has issued a stern warning to the BRICS group of nations, threatening to impose a 100 percent tariff on their goods if they pursue efforts to undermine the US dollar’s dominance in international trade.
“We require a commitment… 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 percent Tariffs,” Trump stated on his Truth Social platform.
This threat comes on the heels of the BRICS summit held in Kazan, Russia, last month, where member nations, including Brazil, Russia, India, China, South Africa, and newer members like Iran, Egypt, and the United Arab Emirates, discussed strategies to enhance non-dollar transactions and bolster local currencies.
BRICS Expansion and Economic Ambitions
Since its establishment in 2009, BRICS has expanded significantly and now represents a sizable portion of global economic output. During the October summit, Moscow secured a joint declaration to strengthen correspondent banking networks within BRICS and promote settlements in local currencies under the BRICS Cross-Border Payments Initiative.
Despite these ambitions, Russian President Vladimir Putin downplayed the prospects of immediate breakthroughs on alternative financial systems. Speaking after the summit, he said, “As for SWIFT and any alternatives, we have not created and are not creating any alternatives.” Addressing the idea of a unified BRICS currency, Putin clarified, “We are not considering that question at the moment.”
Trump’s Protectionist Stance
Trump’s statements highlight his intention to adopt a hardline protectionist trade policy, targeting both economic competitors and allies who deviate from US interests.
“If BRICS countries continue with their plans,” Trump warned, “they should expect to say goodbye to selling into the wonderful US Economy. They can go find another ‘sucker!’ There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America.”
This aggressive posture underscores Trump’s broader agenda to preserve the dollar’s hegemony and discourage alternative currency systems that could weaken its role in global commerce.
As the BRICS nations seek to chart a course for greater economic independence, Trump’s threats set the stage for heightened tensions between the US and one of the world’s most prominent economic coalitions.