With tensions rising over trade and global currency control, President Trump has issued a firm warning to BRICS nations: adhere to the U.S. dollar’s central role in trade or face a complete economic shutdown through 100% tariffs. This warning underscores the U.S. commitment to maintaining its dominant position in international finance, even as BRICS countries push for greater economic independence.
BY PC Bureau
India should take note. Prime Minister Narendra Modi may refer to President Donald Trump as his “good friend,” but the sense of reciprocity in this relationship is absent. \The US president is now threatening to unleash severe economic consequences on India and other BRICS nations, warning of 100% tariffs on their exports if they attempt to replace the US dollar as the dominant global currency.
On Friday, Trump issued a stark warning to BRICS countries, asserting that any attempt to move away from the US dollar in international trade would result in crippling tariffs. “The idea that BRICS countries are trying to move away from the dollar is OVER,” Trump declared. He emphasized that BRICS members must commit to maintaining the US dollar’s role or face heavy tariffs that would block them from selling into the US market. “They can go find another sucker nation,” Trump added.
Taxing allies, fueling inflation, and speeding #dedollarisation. A bold plan or just bluster, Don Trump? 🙂 #BRICS pic.twitter.com/DQgUPRYghB
— Dilip Dhakal (@DilipDhakal) January 31, 2025
Trump’s stance against de-dollarisation is not new. He has long warned BRICS countries that they must adhere to the US dollar or face serious economic consequences. While BRICS nations—Brazil, Russia, India, China, and South Africa—have discussed reducing their reliance on the US dollar, their efforts have been met with staunch opposition from the US. The push for a de-dollarised global economy has gained momentum within BRICS, especially after the imposition of Western sanctions on Russia following its invasion of Ukraine. The group has also expanded to include Egypt, Ethiopia, Indonesia, Iran, and the UAE.
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At the 2023 BRICS Summit, Russian President Vladimir Putin specifically called for de-dollarisation, advocating for the use of national currencies in trade among member countries. This movement continued to gain traction at the June 2024 BRICS foreign ministers’ meeting in Russia, where member states expressed support for reducing dependence on the dollar in bilateral and multilateral transactions.
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However, despite these efforts, the US dollar remains the world’s dominant reserve currency. The Atlantic Council’s GeoEconomics Center recently published a study showing that neither the euro nor BRICS countries have successfully reduced global reliance on the US dollar. Trump’s threat is a clear attempt to maintain this dominance, using tariffs as leverage.
The ex-president’s rhetoric also echoes his previous trade strategies, including recent threats to impose tariffs on Mexico and Canada. Trump argues that such tariffs are necessary to protect American industries and workers. However, economists have cautioned that these tariff policies could increase costs for American consumers and businesses that rely on imported goods and materials.
