Trump threatens 100% tariffs on BRICS nations over dollar replacement plans
As Donald Trump prepares to take office in January, a new tariff war looms on the horizon, particularly targeting the BRICS nations. The U.S. President-elect has warned of imposing a 100% tariff on countries within the BRICS grouping, including India, if they attempt to move away from the U.S. dollar in international trade or introduce an alternative currency. His comments come in the wake of a BRICS summit held in October, during which the group discussed increasing non-dollar transactions and enhancing local currencies.
In an online post, Trump expressed his frustration over the BRICS countries’ efforts to move away from the U.S. dollar. “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote. He added that these nations must pledge not to create a new BRICS currency or back any other currency to replace the U.S. dollar. Failure to do so, he said, would result in severe consequences, including the threat of 100% tariffs and a loss of access to the U.S. market.
Trump’s warning underscores his firm stance against any attempts to challenge the dominance of the U.S. dollar in global trade. “They can go find another ‘sucker,'” Trump stated, asserting that no country will be able to replace the dollar in international commerce. “There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America,” he declared.
Also read: 2nd ISKCON monk arrested in Bangladesh, says Kolkata centre
The BRICS nations—comprising Brazil, Russia, India, China, South Africa, and more recently Egypt, Iran, and the UAE—have been exploring alternatives to the U.S. dollar. At their summit in Kazan, Russia, in October, they discussed strengthening local currencies and establishing non-dollar payment systems. A joint declaration was made to support the development of correspondent banking networks and to enable settlements in local currencies, as part of the BRICS Cross-Border Payments Initiative.
Despite these discussions, Russia’s President Vladimir Putin clarified that no viable alternative to the global SWIFT payment system has been developed yet. India, too, has expressed opposition to any moves aimed at de-dollarization. In October, Indian Foreign Minister S. Jaishankar stated that promoting the use of the U.S. dollar remains a key part of India’s economic policy, although workarounds are considered in certain trade situations where partners do not accept dollars.
Trump’s tariff threats have long been a point of contention, particularly with countries like India, China, and Brazil. His 2025 tariff plan includes a principle of reciprocity, aimed at addressing protectionist policies of other nations. Trump had previously criticized India for its tariff policies, calling it one of the “biggest chargers” of tariffs globally, but also praised the relationship between the U.S. and India under Prime Minister Narendra Modi.
