Trump Repeats 100% Tariff Threat Against BRICS Over Dollar Move

President Donald Trump has again warned BRICS countries against replacing the U.S. dollar as the world’s dominant reserve currency, repeating his threat of 100% tariffs on nations attempting to create an alternative.

“We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs,” Trump wrote on Truth Social on Thursday.

The BRICS bloc—comprised of Brazil, Russia, India, China, and South Africa, along with newly added members Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia—has been discussing ways to shift international trade away from reliance on the U.S. dollar. These talks gained traction after Western sanctions were placed on Russia over its war in Ukraine.

Trump made a nearly identical statement in November, shortly after his election victory. Russia responded at the time by warning that any attempt to force nations to use the dollar would backfire.

The former president also warned that any nation attempting to move away from the dollar should “say hello to Tariffs, and goodbye to America!” Trump has positioned tariffs as a key tool in his economic policy, also threatening a 25% tariff on Mexico and Canada set to take effect Feb. 1. He has tied these proposed tariffs to his efforts to stop illegal immigration and the flow of fentanyl into the U.S.

Despite efforts by BRICS nations to explore alternative currencies, the U.S. dollar remains the dominant global currency. A study by the Atlantic Council’s GeoEconomics Center last year confirmed that the dollar continues to hold its position as the primary reserve currency worldwide.

South Africa’s Department of International Relations and Cooperation addressed the issue, stating that BRICS has not formally discussed creating a common currency but supports increasing trade in national currencies to avoid fluctuations in foreign exchange rates. “Enhancing BRICS payment systems to accommodate trading in local currencies does not imply de-dollarisation,” the department said.

The BRICS group, initially formed in 2009, expanded in 2023 with the addition of four new members, and Indonesia became the latest country to join in January. While some BRICS members have discussed the idea of a new currency backed by gold and national reserves, the idea remains speculative.

Trump’s renewed tariff threat signals that his administration intends to take aggressive action to protect the dollar’s dominance. Whether BRICS nations will continue their push for an alternative remains to be seen.