Trump threatens BRICS countries with 100% tariff if they replace dollar

The BRICS group, which initially included Brazil, Russia, India, China, and South Africa, has recently expanded to incorporate Iran, Saudi Arabia, the United Arab Emirates, Argentina, Egypt, and Ethiopia. The bloc has been vocal about reducing reliance on the US dollar, with some members, including Russia and China, advocating for a BRICS-backed currency as an alternative global reserve currency.

Trump emphasized the US’s firm stance on the matter, stating, “We require a commitment from these Countries that they will neither create a new BRICS Currency nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”

This rhetoric comes amidst broader moves by Trump to implement sweeping tariffs on several trading partners. In recent weeks, he has also threatened 25% tariffs on imports from Canada and Mexico and an additional 10% on goods from China, citing issues such as illegal migration and drug trafficking. These actions have already prompted a diplomatic response, with Canadian Prime Minister Justin Trudeau visiting Trump’s Mar-a-Lago residence to address the matter.

The BRICS nations have long expressed dissatisfaction with the dominance of the US dollar in global trade, with Russian President Vladimir Putin accusing Western powers of “weaponizing” the currency. Speaking at a BRICS summit in October, Putin argued that US sanctions against Russia have eroded trust in the dollar.

The possibility of a BRICS currency was formally discussed during last year’s summit in South Africa, with member nations advocating for a financial system less dependent on Western control.

Trump’s tariff threats highlight his aggressive trade policy, which was a cornerstone of his campaign during the recent US election. His decisive victory has emboldened his commitment to reshaping the global trade landscape and protecting what he calls the “mighty US dollar.”

As Trump prepares to take office, the global economic community is watching closely to see whether his threats will materialise and how BRICS nations and other trading partners will respond.