Synopsis
In a robust declaration against de-dollarisation, Donald Trump has threatened BRICS nations with 100% tariffs on exports if they attempt to replace the US dollar in global trade. His warnings underscore the ongoing struggle between maintaining the US dollar's dominance and the BRICS nations' push for local currency usage.Key Takeaways
- Trump's warning against BRICS
- Threat of 100% tariffs if US dollar is replaced
- BRICS nations exploring local currency trade
- Russia's push for de-dollarisation
- US dollar remains the dominant reserve currency
New Delhi, Jan 31 (NationPress) In a bold statement against de-dollarisation, Donald Trump issued a stern warning on Friday to the BRICS nations, threatening them with 100% tariffs on their exports if they attempt to supplant the US dollar as the primary currency in international trade.
As reported by NDTV, President Trump has consistently emphasized that the BRICS nations must uphold the role of the US dollar in global commerce or risk severe economic repercussions.
This warning mirrors a previous statement made by him on November 30, shortly after his victory in the 2024 election, as noted in the report.
In a post, President Trump stated, “The notion that the BRICS Countries are attempting to shift away from the Dollar, while we sit idly by, is OVER.”
He further added, “We will demand a commitment from these seemingly antagonistic Countries that they will neither develop a new BRICS Currency, nor support any other Currency to take the place of the formidable US Dollar. If they do, they will encounter 100% tariffs and should prepare to bid farewell to access to the flourishing US Economy,” as quoted by NDTV.
“They can seek another gullible Nation. There is no possibility that BRICS can replace the US Dollar in International Trade or elsewhere, and any Country that attempts it should anticipate Tariffs and say goodbye to America,” Trump expressed in his Friday post.
For years, the BRICS alliance has been exploring methods to lessen their reliance on the American dollar.
While the group currently lacks a unified currency, its members—Brazil, Russia, India, China, and South Africa—have recently been advocating for trade in their respective local currencies, according to the report.
Notably, Russia championed the cause of de-dollarisation during the 15th BRICS Summit in 2023, and this initiative gained traction at the June 2024 BRICS foreign ministers’ gathering in Russia, where member nations promoted the use of local currencies for both bilateral and multilateral trade, as reported.
Despite the ongoing efforts towards de-dollarisation and America’s counteractions, the reality remains that the US dollar continues to be the world’s leading reserve currency, and President Trump is determined to maintain that status, even if it entails using the threat of substantial tariffs.
