With the president-elect targeting the BRICS bloc specifically, Donald Trump’s proposed 100% tariff plan may only further global de-dollarization efforts. The statement has been met with increased opposition from countries in the global south. Moreover, it represents another clear attempt at the West weaponizing the greenback.
If enacted, the tariff could be the catalyst for inciting continued efforts to abandon the US dollar on a global scale. Although BRICS nations have previously said that they would not seek to ditch the currency, Trump’s policies could drive a necessary recalculation of what would be best for these countries.
Also Read: Global US Dollar Payments Fall Below 50%
Trump’s 100% Tariff Could Mirror Sanctions, Drive Global De-Dollarization
Following his historic victory in the 2024 presidential election, the US dollar has remained a focus for Donald Trump’s incoming administration. Specifically, he has continually said that losing the greenback as the world’s currency would be akin to the country “losing a war.” Therefore, its position in global finances remains a focal point.
That led the incoming president to issue a stark warning to BRICS nations. “The idea that the BRICS are trying to move away from the dollar while we stand by and watch is OVER,” he said in a Truth Social post.
“We require commitment from these countries that they will neither create a new BRCIS currency to replace the mighty US dollar, or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy,” he added.
Also Read: Top Economist Predicts the Future of the BRICS Currency
Yet, his recent statement only reinforced the reasons why nations are stepping away from trading in the currency. For BRICS and many others, Trump’s 100% tariff plan may only further de-dollarization. It once again shows that the United States wants to leverage its perceived power for its own economic gains and standing.
The imposition of Western sanctions drove Russia to initiate de-dollarization efforts through its BRICS alliance. The weaponization of the greenback saw the bloc further enhance trade deals. Ultimately, leading to the promotion of local currency trade.
That will only enhance under Trump’s tariff plan. Moreover, it will harm American industries. The current efforts to ditch the US dollar wouldn’t have the same effect on imports that the incoming presidents would. In the end, he may well be shooting his incoming administration in the foot.
