Former U.S. President Donald Trump has issued a stern warning to the BRICS economic alliance, threatening a 100% tariff on their exports if they attempt to abandon the U.S. dollar in global trade. In a statement shared on his Truth Social platform, Trump declared that the United States would not allow BRICS countries to introduce a new currency or support an alternative to the dollar. His remarks signal a potential escalation in economic tensions between the U.S. and the emerging market bloc.
The BRICS group, originally comprising Brazil, Russia, India, China, and South Africa, has expanded to include Iran, Ethiopia, Egypt, the United Arab Emirates, and most recently, Indonesia. The bloc has been working towards reducing reliance on the U.S. dollar, a move seen as an effort to challenge Western economic dominance. Russian President Vladimir Putin has particularly championed the idea of an independent BRICS payment system, arguing that it would shield member nations from Western sanctions, especially in response to the war in Ukraine.
Trump’s warning reflects his long-standing “America First” economic stance, which was marked by trade wars and tariff hikes during his first term. His administration imposed tariffs on China, the European Union, and other key trading partners, arguing that the U.S. was being taken advantage of in global trade. If re-elected, Trump could further restrict trade with BRICS nations, potentially leading to a ripple effect on global markets.
The U.S. dollar has long been the dominant currency for global trade and finance, giving Washington leverage over international transactions. However, BRICS nations have been exploring alternatives, including trade in local currencies and the possibility of a unified BRICS currency. If successful, this shift could undermine the dollar’s global influence, prompting strong reactions from U.S. policymakers.
While Trump’s threats may appeal to his political base, experts warn that imposing 100% tariffs on BRICS exports could backfire by increasing prices for American consumers. Trade analysts suggest that such a move would also accelerate the bloc’s efforts to create an independent financial system, potentially deepening the economic divide between Western and emerging powers.
