Former U.S. President Donald Trump has issued a stark warning to the BRICS economic alliance, threatening 100% tariffs if they proceed with plans to move away from the U.S. dollar as an international payment currency.
Trump’s Warning on Truth Social
In a post on his social media platform, Truth Social, Trump declared:
“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.”
“If not, they will face 100 per cent Tariffs and should expect to say goodbye to selling into the wonderful U.S. Economy.”
What is BRICS?
The BRICS group, originally comprising Brazil, Russia, India, China, and South Africa, expanded in 2024 to include Iran, Ethiopia, Egypt, and the United Arab Emirates (UAE). Indonesia also joined in January 2025.
The group aims to challenge the dominance of Western economies, particularly the G7 (Group of Seven). Russian President Vladimir Putin has been vocal about reducing reliance on the U.S. dollar, pushing for an independent payment and clearing system within BRICS.
Why the U.S. Dollar Matters
The U.S. dollar remains the world’s leading reserve currency and is critical for global trade and financial transactions. Russia, however, is actively seeking alternative payment methods to evade Western sanctions imposed over the Ukraine war.
Potential Economic Impact of Tariffs
Trump previously imposed tariffs on imported goods during his presidency (2017–2021), which led to trade tensions with China and other nations. Economists warn that a fresh wave of far-reaching tariffs could increase prices in the U.S. economy, potentially leading to inflationary pressures.
As the BRICS alliance explores dedollarization, tensions between the U.S. and emerging economies are set to escalate. Will Trump’s tariff threat deter BRICS from creating a new global currency? Stay tuned for updates!
—NAN
