Lagatar24 Desk
New Delhi: US President Donald Trump has issued a direct warning to BRICS nations, threatening 100% tariffs on their exports if they attempt to move away from the US dollar in international trade.
“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump wrote in a strongly worded post. He further warned that any country trying to replace the US dollar should expect heavy tariffs and loss of access to the US market.
Rising BRICS Efforts To Reduce Dollar Dependency
The BRICS group—Brazil, Russia, India, China, and South Africa—has long been exploring ways to reduce reliance on the US dollar. The movement gained momentum after Western sanctions on Russia following its Ukraine invasion.
The bloc has since expanded to include Egypt, Ethiopia, Indonesia, Iran, and the UAE. While BRICS does not have a common currency, its members have actively promoted trade in local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin urged for de-dollarisation, calling for more settlements in national currencies. The idea was further reinforced at the BRICS foreign ministers’ meeting in June 2024 in Russia.
US Dollar Still Holds Dominance
Despite growing efforts, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Center found that neither the euro nor BRICS nations have been successful in significantly reducing global dollar reliance.
Trump, who has consistently opposed de-dollarisation, is now using tariffs as leverage. His latest threat follows his recent push for tariffs on Mexico and Canada, arguing they are necessary to combat illegal immigration and drug trafficking into the US.
India And BRICS In Trump’s Crosshairs
During his campaign, Trump called India a “very big abuser” of trade policies. His aggressive stance against BRICS members signals tougher trade policies ahead. He argues that higher tariffs will reduce taxes for American businesses, bring factories back to the US, and cut reliance on foreign economies.
Economic Concerns Over Tariffs
While Trump’s rhetoric aims to protect American industry, economists warn that aggressive tariffs could backfire, increasing costs for American consumers and businesses, particularly in industries that rely on imported raw materials.
As BRICS nations continue their push for financial independence, Trump’s warning sets the stage for rising economic tensions between the US and emerging economies.
