Trump has warned BRICS nations against creating a rival currency to the U.S. dollar, threatening 100% tariffs on goods from countries that attempt to undermine the dollar’s global dominance.
President-elect Donald Trump has issued a stern warning to the BRICS nations—Brazil, Russia, India, China, and South Africa—against creating a new currency to rival the U.S. dollar. In a post on his Truth Social platform on Saturday, Trump declared, “The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER.”
Trump’s statement emphasized the importance of the U.S. dollar as the world’s reserve currency. He demanded a commitment from the BRICS nations to avoid launching or supporting any new currency to replace the dollar in international trade. Failure to comply, he warned, would result in a 100% tariff on all goods from these countries.
“They can go find another sucker,” Trump wrote, adding that any country attempting to undermine the dollar’s dominance would “wave goodbye to America.”
The warning follows ongoing discussions among BRICS nations about reducing reliance on the U.S. dollar in global trade. Although internal disagreements have slowed progress, leaders within the bloc have floated the idea of creating a shared currency to challenge the dollar’s dominance.
The proposal has gained traction in light of U.S.-led sanctions on Russia, which highlighted vulnerabilities in the global financial system for nations heavily reliant on the dollar. However, Trump’s incoming administration appears intent on preserving the dollar’s supremacy through aggressive measures.
Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, criticized the administration’s approach, noting that reducing the U.S. trade deficit while increasing the dollar’s dominance poses conflicting challenges.
The threat against BRICS nations aligns with Trump’s campaign rhetoric advocating tariffs as a tool for economic leverage. In recent days, Trump has also announced plans for tariffs on other trading partners, including a 25% levy on goods from Mexico and Canada and a 10% increase on imports from China. Canadian Prime Minister Justin Trudeau met with Trump last week in an attempt to ease tensions and avert the tariffs.
Senator Ted Cruz defended Trump’s use of tariffs, calling them a “negotiation tactic.” Similarly, Trump’s pick for Treasury Secretary, Scott Bessent, described the president-elect’s strategy as “escalate to de-escalate.”
While BRICS leaders have discussed a shared currency, significant hurdles remain. Internal divisions and reliance on the U.S. dollar for trade transactions complicate any immediate shift. During a recent summit, attendees were advised to bring U.S. dollars or euros for transactions due to limited alternatives in cross-border payment systems.
Trump’s hardline stance reflects a broader effort by his administration to use tariffs and other economic tools to preserve U.S. influence in global trade. His threats against BRICS nations underscore the challenges of maintaining dollar dominance in an increasingly multipolar financial landscape.
The success of Trump’s approach remains uncertain. Economists warn that excessive tariffs could provoke retaliatory measures and strain international trade relationships. Additionally, efforts by countries like China to strengthen their currencies may continue to erode the dollar’s dominance, regardless of U.S. policies.
As the January inauguration approaches, the global community will closely watch how Trump’s administration balances trade negotiations, economic leverage, and the preservation of the U.S. dollar’s status in international markets.