WEST PALM BEACH, Fla. — President-elect Donald Trump on Saturday issued a stern warning to the BRICS alliance, threatening 100% tariffs against the bloc’s nine member nations if they take actions to undermine the U.S. dollar.
Upgrade to a Modern Christmas Tree for a Stunning, Effortless Festive Season!
Targeting the BRICS Alliance
The BRICS bloc comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. Trump’s threat also comes as Turkey, Azerbaijan, and Malaysia seek membership in the group, while several other nations have expressed interest.
The alliance has increasingly pushed for a shift away from the U.S. dollar’s dominance in global trade—a movement known as “de-dollarization.” This effort includes discussions of creating a BRICS-backed currency and expanding trade in non-dollar denominations.
In a post on Truth Social, Trump stated, “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.”
Avoid Home Invasions With These Essential Security Devices
The Dollar’s Dominance Under Pressure
Currently, the U.S. dollar accounts for approximately 58% of the world’s foreign exchange reserves, according to the International Monetary Fund (IMF), and is widely used for trading major commodities such as oil. However, the BRICS nations’ growing economic power and their efforts to establish alternative payment systems have put pressure on the dollar’s dominance.
Russian President Vladimir Putin, speaking at a BRICS summit in October, accused the U.S. of “weaponizing” the dollar and called it a “big mistake.” He highlighted Russia’s push to create an alternative to the global bank messaging network SWIFT, enabling countries like Russia to bypass Western sanctions.
“It’s not us who refuse to use the dollar,” Putin said. “But if they don’t let us work, what can we do? We are forced to search for alternatives.”
Doctor Who 60th Anniversary Blu-ray: Now on Sale at Amazon
Donald Trump Doubles Down on Tariff Threats
Trump dismissed the possibility of BRICS replacing the dollar in global trade, saying, “There is no chance BRIC will replace the U.S. dollar in global trade, and any country that tries to make that happen should wave goodbye to America.”
The president-elect has a history of using tariff threats as leverage in trade negotiations. Earlier this year, he proposed 25% tariffs on imports from Mexico and Canada, alongside a 10% tariff on Chinese goods, as part of efforts to combat illegal immigration and drug trafficking.
Revolutionize Your Kitchen With The Power of These Air Fryers
Reassurances on the Dollar’s Stability
Despite rising challenges, analysts maintain that the U.S. dollar remains firmly entrenched as the world’s primary reserve currency.
A model by the Atlantic Council assessing global reserve currencies concluded that the dollar’s dominance is “secure in the near and medium term” and continues to outpace other currencies.
Diplomatic Fallout
Trump’s tariff threats have already strained relations with neighboring nations. Mexican President Claudia Sheinbaum expressed confidence that a tariff conflict could be avoided following a recent call with Trump. However, Canadian Prime Minister Justin Trudeau returned from talks with the president-elect without assurances that threatened tariffs on Canadian goods would be withdrawn.
The escalating tensions with the BRICS alliance signal another potential flashpoint in the president-elect’s foreign policy, as nations increasingly challenge the long-held dominance of the U.S. dollar.
