Trump warns BRICS nations of a 100% tariff if they undermine the US dollar

Former US President Donald Trump has issued a stern warning to the BRICS nations, stating that if the group of nine countries attempts to weaken the US dollar, they will face a 100% tariff on their trade with the United States. The countries in question—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates—have been at the centre of growing global economic discussions due to their intentions to challenge the dominance of the US dollar.

Turkey, Azerbaijan, and Malaysia have shown interest in joining this alliance, while several other nations have expressed curiosity about participating as well. Despite these challenges, the US dollar remains the most widely used currency in global trade and continues to maintain its stronghold over the global economy. It represents around 58% of the world’s foreign exchange reserves, and critical commodities, such as oil, are primarily traded in dollars.

However, BRICS nations, along with other developing countries, have voiced their dissatisfaction with the US’s dominance over the global financial system. With BRICS countries’ increasing share in global GDP and their intentions to trade in currencies other than the US dollar—an effort often referred to as “de-dollarization”—the US dollar’s supremacy is facing potential challenges.

Trump took to his social media platform, “Truth Social,” to reinforce his stance. He stated that the US government requires a guarantee from these countries that they will not create a new BRICS currency or support replacing the US dollar in global trade. Failure to comply with this demand would result in severe tariffs and potentially losing access to trade with the US economy.

In October, during a BRICS summit, Russian President Vladimir Putin accused the United States of weaponising the dollar, calling it a “big mistake.” Putin argued that Russia, particularly, had been forced to seek alternatives to the dollar after facing Western sanctions. He emphasised that if the US continues to obstruct global trade, nations like Russia have no choice but to look for other options.

Russia has been working on creating a new payment system to serve as an alternative to the global banking messaging network SWIFT, which could provide Moscow with the ability to trade with its partners while avoiding the impact of Western sanctions.

Trump dismissed the possibility of the BRICS group replacing the US dollar in global trade, claiming that any country attempting to do so would have to “say goodbye to the United States.” His remarks underline the continuing tensions between the US and BRICS nations as they grapple over the future of global finance.