Washington, D.C. – President Donald Trump has issued a stark warning to BRICS nations, threatening 100% tariffs if the economic bloc attempts to replace the US dollar in international trade. The comments, made during a campaign speech and later reiterated on social media, have sparked global economic concerns and drawn reactions from BRICS member states, including India, China, Russia, Brazil, and South Africa.
DW reported that Trump labeled BRICS countries as “seemingly hostile” and accused them of undermining the US economy by considering alternatives to the dollar for global transactions. He warned that any attempt to sideline the dollar would result in severe trade penalties, stating, “If BRICS wants to replace the US dollar, they can go find another sucker nation to trade with.”
Yahoo News confirmed that Trump’s proposed 100% tariffs would apply to any BRICS nation that reduces reliance on the dollar, a move that could significantly impact global trade dynamics. This threat comes amid growing efforts by BRICS members to explore alternative currencies and payment mechanisms, particularly in response to US sanctions and monetary policies.
The response from BRICS nations has been mixed. NDTV reported that while Russia and China have been vocal about reducing dollar dependence, other members, such as India and Brazil, have taken a more cautious approach, preferring gradual diversification rather than outright abandonment of the dollar.
The Kremlin responded to Trump’s remarks, downplaying the possibility of a BRICS-led currency. US News quoted Kremlin spokesperson Dmitry Peskov, who stated that while BRICS seeks to enhance financial cooperation, there are no immediate plans for a single alternative currency. However, he emphasized that economic de-dollarization is a long-term goal in response to Western sanctions.
India’s position has been particularly scrutinized, given its strategic ties with both the US and BRICS. Hindustan Times noted that Indian officials have not directly responded to Trump’s comments but have emphasized New Delhi’s balanced approach to global trade and currency diversification.
The Times of India reported that analysts believe Trump’s rhetoric is largely aimed at his domestic political base, positioning himself as a strong defender of American financial dominance ahead of the 2024 election. However, if implemented, such tariffs could trigger retaliatory measures from BRICS nations, potentially leading to a global trade war.
While Trump’s threats are not yet official US policy, his comments have added to growing uncertainty in global financial markets. As BRICS nations continue to explore alternative economic frameworks, the potential consequences of US retaliation remain a key concern for policymakers worldwide.
