The countries of the BRICS bloc could face 100% tariffs if they introduce an alternative to the U.S. dollar, newly re-elected U.S. President Donald Trump has warned.
In a post on his Truth Social platform on Saturday (November 30), Trump stated that any attempts by BRICS nations to move away from the U.S. dollar would not be tolerated. He demanded that these countries commit to refraining from creating a new BRICS currency or supporting any alternative to the dollar. Failure to comply, he warned, would result in 100% tariffs and loss of access to the U.S. market.
The BRICS bloc, formed in 2011, consists of Brazil, Russia, India, China, and South Africa. In 2023, the group expanded to include new members such as Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt. South Africa’s Foreign Minister Naledi Pandor has noted that 34 additional countries, including Bangladesh, have expressed interest in joining the bloc.
Earlier in 2023, Brazilian President Luiz Inácio Lula da Silva proposed the creation of a common currency for BRICS to reduce reliance on the U.S. dollar. If BRICS were to establish its own currency and banking network, countries like Russia, China, and Iran could bypass Western sanctions. However, due to differing economic and political priorities among member nations, the possibility of introducing a unified currency in the near future remains uncertain.
BRICS holds particular importance for China and Russia, who view the bloc as a means to challenge U.S. global dominance. Russia, currently chairing BRICS, has emphasized the bloc’s role in fostering an alternative to Western-led institutions.
At the BRICS summit in October, Russian President Vladimir Putin and Chinese President Xi Jinping argued that Western nations are becoming increasingly isolated, asserting that the “global majority” supports BRICS initiatives.
Trump’s economic warning comes as he has already proposed significant tariffs on imports from Mexico, Canada, and China, citing concerns over illegal immigration, crime, and drug trafficking.