Washington, D.C. – U.S. President Donald Trump issued a stark warning to BRICS member states on Thursday, threatening to impose 100% tariffs on their exports if they attempt to replace the U.S. dollar as the global reserve currency. The warning, posted on Trump’s Truth Social platform, comes amid growing discussions within the BRICS bloc about creating an alternative currency to reduce reliance on the dollar.
“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,” Trump wrote. He added, “There is no chance that BRICS will replace the U.S. dollar in international trade, or anywhere else, and any country that tries should say hello to tariffs, and goodbye to America!”
This is not the first time Trump has raised the issue. Shortly after winning the November 2024 elections, he made a similar statement, signaling his administration’s determination to protect the dollar’s dominance in global trade.
The BRICS Challenge to the Dollar
The BRICS group, originally comprising Brazil, Russia, India, China, and South Africa, has expanded in recent years to include Egypt, the United Arab Emirates, Ethiopia, Iran, and Indonesia, bringing its total membership to 11 nations. Formed in 2009 as a counterbalance to the economic dominance of the U.S. and its Western allies, BRICS represents nearly half of the world’s population and is often seen as a counterpart to the G7 group of advanced economies.
In recent years, BRICS nations have explored the possibility of introducing a new reserve currency to reduce their dependence on the U.S. dollar. These discussions gained momentum after Western countries imposed sweeping sanctions on Russia following its invasion of Ukraine in 2022, highlighting the risks of relying on the dollar-dominated financial system.
Despite these efforts, the U.S. dollar remains the world’s primary reserve currency, accounting for a significant share of global trade and financial transactions. Its strength has only grown in recent years, bolstered by the stability of the U.S. economy and the dollar’s role as a safe-haven asset during times of crisis.
Tariffs on Canada and Mexico
In addition to his warning to BRICS nations, Trump announced plans to impose 25% tariffs on imports from Canada and Mexico starting Saturday. However, he indicated that the decision to include oil from these countries in the tariffs is still under consideration.
“We may or may not,” Trump told reporters at the Oval Office on Thursday, explaining that his decision would depend on whether oil prices charged by the two North American trade partners are fair.
The proposed tariffs are also part of Trump’s broader strategy to address illegal immigration and the smuggling of chemicals used to produce fentanyl, a synthetic opioid responsible for tens of thousands of deaths in the U.S. annually.
Global Implications
Trump’s threats against BRICS nations and his tariff plans for Canada and Mexico underscore his administration’s aggressive approach to trade and economic policy. While the U.S. dollar’s dominance remains unchallenged for now, the growing push for alternatives within BRICS highlights the shifting dynamics of the global economy.
For BRICS nations, the creation of a new reserve currency could offer greater economic independence and reduce vulnerability to U.S. sanctions. However, Trump’s tariff threats signal that any move away from the dollar will come at a significant cost.
As the world watches these developments unfold, the question remains: will BRICS nations risk economic retaliation to challenge the dollar’s supremacy, or will they tread cautiously in the face of Trump’s warnings?
