President-elect Donald Trump issued a stern warning to BRICS nations on Saturday, cautioning them against advancing plans to create an alternative currency to the US dollar. The remarks come amid growing discussions within the bloc—comprising Brazil, Russia, India, China, South Africa, and recent additions like Iran, Egypt, Ethiopia, and the UAE—about reducing dependency on the dollar in global trade.
In a statement posted on Truth Social, Trump declared, “The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER.” He demanded that the bloc abandon any plans for a unified currency, threatening to impose 100% tariffs on nations undermining the dollar’s dominance.
The warning follows deliberations during the 2023 BRICS summit in South Africa, where members agreed to explore the feasibility of a common currency—a proposal strongly supported by Brazilian President Luiz Inácio Lula da Silva.
India, a significant player within the bloc, has consistently resisted de-dollarization efforts. External Affairs Minister S. Jaishankar recently addressed the issue, emphasizing that India’s approach aims to facilitate trade with partners facing dollar-related restrictions rather than challenge the currency’s global hegemony. Speaking at the Carnegie Endowment for International Peace, Jaishankar remarked, “Our focus is not on undermining the dollar but ensuring smoother trade mechanisms. Alternatives are considered solely for specific trade needs, not as a strategic move to weaken the dollar.”
While Russia and China remain vocal proponents of reducing reliance on the dollar, India’s cautious stance reflects broader concerns about the feasibility and risks of a common BRICS currency.
Trump’s forceful response underscores the geopolitical stakes of any challenge to the dollar’s status as the world’s reserve currency. With global trade and economic alliances at a crossroads, the BRICS bloc’s future steps could significantly influence international financial systems and power dynamics.