President-elect Donald Trump vows to impose tariffs and economic penalties on BRICS nations if they move to replace the U.S. dollar as the global reserve currency.
By yourNEWS Media Newsroom
President-elect Donald Trump has issued a stark warning to the BRICS coalition (Brazil, Russia, India, China, and South Africa), threatening 100% tariffs on their exports to the U.S. if they abandon the U.S. dollar in favor of a new currency. In a statement on Truth Social, Trump declared that such actions would effectively shut BRICS countries out of the U.S. economy.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote. “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 U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy. They can go find another ‘sucker!’”
BRICS Moves Toward De-Dollarization
The BRICS nations have been actively exploring alternatives to the dollar, holding a summit in Kazan, Russia, last month to develop a financial framework independent of Western systems. Russian President Vladimir Putin has championed this initiative, citing the need to insulate economic development from political influence. Putin emphasized that reliance on local currencies for trade “helps to keep economic development free from politics.”
The drive to de-dollarize accelerated following U.S.-led sanctions on Russia in response to its invasion of Ukraine in 2022. These sanctions included banning Russian banks from the SWIFT international payment system, which Putin argued undermined global trust in the dollar.
However, Trump’s re-election has prompted a reassessment of these plans. In the wake of Trump’s victory, Putin announced that BRICS would not entirely abandon the dollar but would continue seeking ways to reduce reliance on it. “Our proposals are not aimed against [the] dollar,” Putin said, framing the initiative as a response to modern economic challenges.
Expanding BRICS Membership
The BRICS bloc has recently grown to include Iran, Egypt, Ethiopia, and the UAE, with 20 countries formally applying for membership and an additional 40 expressing interest. These developments reflect the group’s efforts to expand its influence and economic coordination globally.
Despite these ambitions, Trump’s strong rhetoric underscores his administration’s intent to protect the dollar’s status as the world’s dominant reserve currency.
Strategic and Economic Implications
Trump’s proposed 100% tariffs represent a significant escalation in U.S. economic policy toward BRICS nations. While such tariffs could serve as a deterrent against de-dollarization, they also risk exacerbating global trade tensions and further fracturing international economic alliances.
The BRICS coalition has yet to formally adopt a unified currency, but its push toward alternative financial systems highlights the shifting dynamics in global trade and monetary policy. As Trump prepares to take office, his administration’s approach to BRICS and the broader international financial system will play a critical role in shaping the future of U.S. economic leadership.
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