Trump’s latest warning comes as BRICS remains resolute in its plans to reduce reliance on the U.S. dollar as the dominant currency for global transactions.
The bloc has been actively working toward de-dollarization, seeking to establish a more centralized trade system that is less dependent on the dollar.
In a recent statement, Trump reaffirmed his threat to impose 100% tariffs on BRICS countries.
His remarks come as a February 1 deadline approaches, during which he has also vowed to impose 25% tariffs on Canada and Mexico unless they take stricter measures to curb illegal immigration and the flow of fentanyl into the United States.
Trump threatens sanctions
Last year, Trump responded by threatening to impose 100% tariffs on BRICS nations if they attempted to bypass or replace the U.S. dollar in international trade.
He firmly stated that the U.S. would not permit BRICS countries to introduce a new currency or endorse any alternative for global transactions.
Posting on Truth Social, he warned that any nation moving away from the dollar would have to “wave goodbye to America” and its market.
Trump demanded that BRICS nations issue a formal commitment to halt their efforts to bypass the U.S. dollar in international trade.
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” he posted on his Truth Social platform.
“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,” he continued.
Trump’s threat meets brick wall
In response, the Kremlin warned that any U.S. attempt to force countries to use the dollar would have unintended consequences.
Kremlin spokesperson, Dmitry Peskov stated that the dollar’s appeal as a global reserve currency was diminishing, with more countries seeking alternatives.
He cautioned that if Washington resorted to “economic force” to enforce dollar dependency, it would ultimately backfire
“If the U.S. uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies (in international trade),” said Peskov.
Since its inception, the BRICS group—comprising Brazil, Russia, India, China, South Africa, and newer members like Egypt, Ethiopia, Iran, and the UAE—has advocated for greater economic independence from the U.S.
The bloc has actively explored alternatives to the U.S. dollar in international trade, particularly following the heavy sanctions imposed on Russia by the U.S. in 2022.
As of now, however, BRICS has not issued any formal statement or commitment to halt its plans to reduce reliance on the dollar as the dominant global trade currency.
