Trump Warns BRICS Against Replacing U.S. Dollar, Threatens 100% Tariffs.

President Donald Trump cautioned BRICS member nations against attempting to replace the U.S. dollar as the global reserve currency. He reiterated a threat of 100% tariffs, a stance he first expressed after winning the U.S. elections in November.

In a post on TruthSocial, Trump stated, “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—or they will face 100% tariffs.”

In December 2024, Russia countered such warnings, stating that any attempt to force BRICS nations to use the U.S. dollar would only accelerate the shift toward national currencies.

A 2024 study by the Atlantic Council’s GeoEconomics Center reaffirmed the U.S. dollar’s dominance as the world’s primary reserve currency, showing that alternative currencies, including the euro, had failed to displace it.

BRICS and De-dollarization Efforts

BRICS, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates, does not currently have a common currency. However, discussions about a unified BRICS currency have gained momentum, particularly after Western sanctions were imposed on Russia following its invasion of Ukraine.

The push to reduce dependence on the dollar has been further driven by the strong performance of the U.S. economy, shifting tax and monetary policies, and ongoing geopolitical tensions, Reuters reported.

Trump’s Tariff Threats on Other Nations

Beyond BRICS, Trump has also pledged to impose a 25% tariff on imports from Canada and Mexico starting February 1, aiming to curb illegal immigration and the flow of opioids such as fentanyl.

Additionally, he has warned China of a 10% tariff on imports, accusing the country of contributing to America’s fentanyl crisis.