WASHINGTON, Jan 31 (Reuters) – President Donald Trump has issued a stern warning to BRICS member countries, threatening 100% tariffs if they attempt to replace the U.S. dollar as a reserve currency. This warning, posted on Truth Social, echoes a similar statement he made shortly after winning the November presidential elections.
“We are going to require a commitment from these seemingly hostile 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,” Trump declared.
The BRICS grouping, which includes Brazil, Russia, India, China, and South Africa, along with recent additions such as Egypt, Ethiopia, Iran, and the United Arab Emirates, has been discussing alternatives to the U.S. dollar, especially after Western sanctions on Russia over the Ukraine conflict.
“There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!” Trump emphasized.
Trump’s warning comes as Canada and Mexico await his decision on imposing 25% tariffs on their trade with the U.S., aimed at curbing illegal drug flow and unauthorized migration.
Despite the push by BRICS countries to reduce reliance on the dollar, the U.S. dollar’s dominance has been bolstered by a robust economy, tighter monetary policy, and geopolitical risks. A study by the Atlantic Council’s GeoEconomics Center last year confirmed that the U.S. dollar remains the world’s primary reserve currency, with no significant reduction in global reliance on it.
The BRICS bloc, initially coined as BRIC by Goldman Sachs economist Jim O’Neill in 2001, was founded in 2009 to challenge the U.S.-dominated world order. South Africa joined in 2010, and the group has since expanded to include several other nations.
