On Thursday, former U.S. President Donald Trump cautioned BRICS nations against replacing the U.S. dollar as the global reserve currency, reiterating his earlier threat of imposing 100% tariffs following his victory in the November elections.
In a post on TruthSocial, Trump stated, “We will require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency nor support any alternative to replace the mighty U.S. dollar. Otherwise, they will face 100% tariffs.”
He further added, “They can go find another sucker nation. There is no chance that BRICS will replace the U.S. dollar in international trade or anywhere else. Any country that tries should prepare for tariffs and say goodbye to America!”
In December 2024, Russia had asserted that any pressure on BRICS nations to use the U.S. dollar would only strengthen demand for national currencies.
A 2024 study by the Atlantic Council’s GeoEconomics Center highlighted continued global reliance on the U.S. dollar as the primary reserve currency. It also found that previous efforts, including the euro and alternative currency initiatives, had failed to displace the dollar’s dominance.
BRICS comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates. While the group lacks a common currency, discussions around a potential alternative have gained momentum, particularly after Russia faced sanctions from Western nations due to the war in Ukraine.
A broader global shift away from dollar dependence has been driven by the U.S. economy’s performance, changing tax and monetary policies, and geopolitical tensions, according to a Reuters report.
Trump has also vowed to impose a 25% tariff on imports from Canada and Mexico starting February 1, aiming to curb illegal immigration and the inflow of opioids like fentanyl. Additionally, he has warned China of a 10% import tariff, citing the country’s role in fentanyl distribution as a threat to the U.S.
