President-elect of the United States, Donald Trump, has heightened tensions with the BRICS alliance by threatening to impose 100% tariffs on imports from member nations if they advance plans to establish a new currency that competes with the US dollar.
In a post on his Truth Social platform on Saturday, November 30, Trump announced, “The notion that the BRICS countries are attempting to shift away from the Dollar while we sit idly by is OVER.”
Originally consisting of Brazil, Russia, India, China, and South Africa, the BRICS group has recently welcomed Iran, Saudi Arabia, the United Arab Emirates, Argentina, Egypt, and Ethiopia into its fold. The bloc has been outspoken about diminishing dependency on the US dollar, with certain members, such as Russia and China, pushing for a BRICS-endorsed currency as a viable alternative to the global reserve currency.
Trump stressed the United States’ unwavering position, asserting, “We demand a pledge from these Countries that they will neither introduce a new BRICS Currency nor support any other Currency to supplant the illustrious U.S. Dollar or they will encounter 100% Tariffs and should prepare to bid farewell to access to the fabulous U.S. Economy.”
This rhetoric emerges as part of Trump’s broader strategy to impose extensive tariffs on multiple trading partners. In recent weeks, he has also warned of 25% tariffs on imports from Canada and Mexico and an added 10% on goods from China, citing concerns over illegal immigration and drug trafficking. These declarations have already elicited a diplomatic reaction, with Canadian Prime Minister Justin Trudeau visiting Trump’s Mar-a-Lago estate to discuss the issue.
The BRICS nations have long voiced their discontent with the prevalence of the US dollar in international trade, with Russian President Vladimir Putin accusing Western nations of “weaponizing” the currency. At a BRICS summit in October, Putin contended that US sanctions against Russia have diminished trust in the dollar.
The potential establishment of a BRICS currency was formally addressed during last year’s summit in South Africa, with member nations advocating for a financial structure that is less reliant on Western power.
Trump’s tariff threats underline his assertive trade policy, which was a fundamental aspect of his campaign during the recent US election. His resounding victory has strengthened his resolve to transform the global trade paradigm and safeguard what he refers to as the “powerful US dollar.”
As Trump readies to assume office, the global economic community is closely observing whether his threats will manifest and how BRICS nations and other trading partners will react.