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President-elect Donald Trump has issued a stark warning to the countries in the BRICS alliance, threatening 100% tariffs if they proceed with plans to develop a new currency. The bloc, which includes emerging economies such as Brazil, Russia, India, China, and South Africa, recently expanded to include Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt. Trump’s statement, delivered via his Truth Social platform on Saturday, reflects his administration’s firm stance on preserving the dominance of the US dollar in global trade.
“The idea that BRICS countries are moving away from the Dollar while we stand by is OVER. These countries must commit to neither creating a new BRICS Currency nor backing any alternative to replace the mighty U.S. Dollar,” Trump wrote. “If they refuse, they will face 100% tariffs and lose access to the wonderful U.S. economy.”
BRICS, which has seen growing interest globally with 34 nations reportedly expressing interest in joining, has been viewed as a potential counterweight to the Western-led financial system. Earlier in 2023, Brazilian President Luiz Inácio Lula da Silva proposed a shared currency for South America to reduce reliance on the US dollar. This idea, coupled with BRICS nations exploring alternatives to dollar-based trade systems, has fueled speculation about a possible new currency, though experts highlight challenges due to differing economic priorities and geopolitical tensions within the bloc.
The alliance’s shift away from dollar-dominated systems is significant for countries like Russia and China. Both nations have used BRICS as a platform to counter Western economic influence. For Russia, in particular, the grouping offers a means to bypass sanctions imposed following its invasion of Ukraine in 2022. Russia, currently holding the group’s rotating chairmanship, has worked with China to present BRICS as a unified front against what they term Western dominance, with their leaders asserting that a “global majority” supports their stance.
Trump’s tariff threats are the latest in a series of aggressive trade policy announcements. Recently, he vowed to impose steep tariffs on imports from Mexico, Canada, and China on his administration’s first day, citing concerns over illegal immigration, crime, and drug trafficking. While he claimed these tariffs are necessary to protect American interests, his announcements have sparked mixed reactions from foreign leaders.
Following Trump’s tariff statement, Mexican President Claudia Sheinbaum confirmed a conversation with Trump, though their accounts of the call differ. Meanwhile, Canadian Prime Minister Justin Trudeau met Trump at Mar-a-Lago for discussions described as productive by both leaders. Trudeau called their Friday dinner an “excellent conversation,” emphasizing the importance of continued collaboration between the neighboring nations.
As the BRICS bloc continues to expand and explore new economic frameworks, Trump’s tariff ultimatum underscores the geopolitical tension surrounding the global currency landscape and the United States’ determination to maintain its economic leadership.
