President-elect Donald Trump has issued a stern warning to the BRICS bloc—Brazil, Russia, India, China, and South Africa—over their plans to establish an alternative currency to rival the US dollar.
Speaking ahead of his inauguration in January 2025, Trump declared that the United States would not allow any effort to undermine the global dominance of the 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,” Trump wrote on his social media platform.
“We require a commitment from these countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar. Otherwise, they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy. They can go find another ‘sucker!’”
BRICS, an economic bloc representing nearly half of the world’s population and a significant share of global GDP, has been exploring a unified currency to reduce dependency on the dollar.
The idea gained momentum in 2023 at the BRICS summit in Johannesburg, where leaders discussed creating a currency backed by member nations’ natural resources.
The initiative aims to protect their economies from US monetary policies and sanctions, which they argue disproportionately impact developing nations.
Although the BRICS nations have yet to formally launch the currency, their collective influence has raised concerns about a shift in global financial power. The dollar has long been the backbone of international trade, largely due to its use in oil transactions, known as the “petrodollar,” and its status as a reserve currency.
A competing currency could challenge this position, especially as some economies explore alternatives to dollar-based trade.
Trump’s comments underline the growing friction between the US and BRICS nations as the latter push for greater independence on the global stage. His threat to impose 100% tariffs could lead to a broader trade conflict, with significant implications for global markets.
“There is no chance that the BRICS will replace the US dollar in international trade,” Trump asserted. “Any country that tries should wave goodbye to America.”
As Trump prepares to take office, his hardline stance signals an aggressive economic policy aimed at safeguarding US dominance. His administration is expected to keep a close eye on the BRICS nations’ actions, setting the stage for a potentially volatile period in global financial relations.