President elect Donald Trump has issued a stark warning to BRICS nations, threatening to impose a 100% tariff on any member country that shifts away from the U.S. dollar in international trade. The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—recently expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates, sparking heightened discussions about reducing dependence on the dollar. Trump’s statement, delivered on his social media platform Truth Social, underscores his staunch opposition to such moves, which he sees as a direct challenge to U.S. economic dominance.
Trump wrote, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER.” He demanded that the bloc commit to using the dollar as their primary reserve currency and explicitly abandon plans to create a new BRICS currency or support any alternatives. The former president emphasized that noncompliance would result in severe economic repercussions, saying, “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 US Dollar, or they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful US Economy.”
Growing Tensions Over Dollar Alternatives
Discussions within BRICS about moving away from the U.S. dollar have gained momentum in recent years, particularly following the imposition of U.S. sanctions on Russia in 2022 over its military actions in Ukraine. The sanctions highlighted vulnerabilities for countries relying heavily on the dollar, spurring intensified efforts within the bloc to explore alternatives. While some BRICS leaders have expressed interest in creating a unified currency, others have advocated for increased trade in local currencies or a mix of non-dollar-based systems.
In August 2023, the BRICS summit in Johannesburg saw renewed focus on these goals, with member states highlighting the benefits of reducing reliance on the dollar. Proponents argue that such a move could enhance economic sovereignty and mitigate risks associated with U.S.-dominated financial systems, especially amid geopolitical tensions.
Trump dismissed these efforts outright, stating, “There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America.” His remarks echo the economic nationalism that characterized his presidency, during which he frequently deployed tariffs as a tool to pressure foreign governments on trade and geopolitical issues.
Tariffs as a Diplomatic Weapon
The threat of a 100% tariff is consistent with Trump’s history of using trade policy as leverage. During his presidency, he imposed tariffs on imports from allies and adversaries alike, citing concerns over trade imbalances, national security, and illegal immigration. Notably, he levied a 25% tariff on steel and aluminum imports from Canada and Mexico and proposed additional tariffs on Chinese goods to address intellectual property theft and trade deficits. His administration’s trade wars drew criticism for raising costs for American consumers and businesses, but they also reshaped global supply chains and compelled renegotiations of key trade agreements, such as the United States-Mexico-Canada Agreement (USMCA).
Trump’s latest threat against BRICS nations builds on this precedent, but the scale of the proposed tariffs—100%—is unprecedented. Such a move would effectively double the cost of goods imported from these countries, potentially crippling their ability to access the lucrative U.S. market. The impact on American businesses and consumers, however, could also be significant, given the reliance on imports from BRICS countries, particularly China and India.
Trump’s warning comes at a time when the U.S. faces growing challenges to its economic and geopolitical influence. The dollar’s status as the world’s reserve currency has long been a cornerstone of American power, enabling the U.S. to borrow cheaply, impose effective sanctions, and maintain a dominant role in global finance. Any erosion of this status could have far-reaching consequences for the U.S. economy and its ability to project power abroad.
Analysts suggest that Trump’s approach could backfire, potentially accelerating efforts by BRICS nations to develop alternatives to the dollar. “Imposing such harsh tariffs might push these countries to deepen economic ties with each other and other non-Western allies,” one expert noted, adding that “it could incentivize further de-dollarization and weaken U.S. influence in the long run.”
Meanwhile, the expansion of BRICS to include countries like Iran, Egypt, and the UAE has added new dimensions to the bloc’s aspirations. These nations bring strategic resources, such as oil and gas, and geopolitical significance, enhancing the group’s potential to challenge Western-dominated institutions. Critics of Trump’s stance argue that a more collaborative approach, rather than punitive measures, might yield better results in maintaining U.S. leadership.
Trump’s comments also reflect the broader economic and political context in which he is positioning himself as a leading candidate for the 2024 presidential election. His platform continues to emphasize “America First” policies, with a focus on combating perceived threats to U.S. economic and national security. His proposals include tariffs not only on BRICS nations but also on countries like Mexico and Canada to address issues such as illegal migration and drug trafficking.
These policies resonate with parts of his base, who view them as necessary to protect American jobs and industries. However, they have also drawn criticism from economists and international trade experts, who warn that protectionist measures could undermine global trade and lead to retaliatory actions.
A spokesperson for Trump’s transition team did not immediately provide clarification on the specifics of the proposed tariffs or how they would be implemented. It remains unclear whether the policy would apply uniformly to all BRICS members or be tailored based on their individual trade relationships with the U.S.
Future of BRICS and U.S. Relations
The trajectory of BRICS and its interactions with the U.S. will likely shape global economic trends in the coming years. While the bloc’s ambitions to reduce dependence on the dollar face significant logistical and political challenges, the growing alignment among its members signals a shift in the global order. For the U.S., navigating this landscape will require balancing assertiveness with diplomacy, ensuring that efforts to protect national interests do not alienate key trading partners or weaken alliances.
Trump’s remarks have already sparked reactions from international observers, with some BRICS leaders interpreting them as evidence of U.S. insecurity about its waning influence. Others see the threat as a test of the bloc’s resolve to pursue its goals despite external pressure.
As the debate over the future of the dollar and international trade continues, the potential for further economic and geopolitical tensions remains high. Whether Trump’s tariff threat will deter BRICS nations from exploring dollar alternatives—or inadvertently galvanize their efforts—remains to be seen. One thing is clear: the evolving dynamics between the U.S. and BRICS will be a focal point in shaping the global economic order.
