United States President Donald Trump has escalated his rhetoric against the BRICS nations, warning of 100% tariffs on trade with the U.S. if the bloc continues its efforts to reduce reliance on the U.S. dollar in global trade. Speaking during a signing ceremony at the Oval Office on Monday, President Trump made it clear that any attempt by BRICS to launch a new global currency or expand settlements in local currencies would face swift economic retaliation.
“As a BRICS nation, they’ll have a 100% tariff if they so much as even think about doing what they thought,” Trump stated, in reference to the group’s ongoing de-dollarization plans. “And therefore, they’ll give it up immediately.”
The President emphasized that his statement should not be viewed as a threat but rather as a definitive stance on protecting U.S. economic interests. “If the BRICS nations want to do that, that’s OK,” Trump added, “but we’re going to put at least a 100% tariff on the business they do with the United States. It’s not even a threat.”
This marks a continuation of Trump’s hardline approach towards BRICS—a coalition comprising Brazil, Russia, India, China, and South Africa—which has been working to reduce the dominance of the U.S. dollar in international trade. Trump previously warned of severe consequences for the bloc’s plans even before assuming office as the 47th President of the United States.
BRICS De-Dollarization Plans Underway
The BRICS nations have been steadily advancing their de-dollarization agenda in recent years. During the 15th BRICS Summit held via videoconferencing in 2023, Russian President Vladimir Putin called for a reduction in the global reliance on the dollar. He urged member countries to expand the use of national currencies for trade and financial transactions.
This initiative gained further momentum in June 2024 when the BRICS Foreign Ministers convened in Nizhny Novgorod, Russia. The group collectively advocated for increased use of local currencies in bilateral and multilateral trades, signaling a unified commitment to reshaping the global financial system.
Trump Counters Biden’s Perspective
During his remarks, President Trump also took aim at comments made by former President Joe Biden, accusing him of projecting U.S. vulnerability on the matter. “Since I made that statement, Biden said, they have us over a barrel. I said, No, we have them over a barrel,” Trump asserted. “And there’s no way they’re going to be able to do that.”
Trump’s administration has consistently positioned itself as leveraging America’s economic dominance to counteract any moves that could weaken the dollar’s role as the world’s reserve currency.
The Stakes for Global Trade
The stakes are high for both sides. For the U.S., maintaining the dollar’s supremacy in global trade is critical for its economic stability and influence. For BRICS, reducing dependence on the dollar is seen as a pathway to greater financial autonomy and a counterweight to U.S. economic dominance.
The clash underscores the growing tension between established and emerging powers over the future of the global financial system. With Trump’s latest warning, it remains to be seen how the BRICS nations will respond to the prospect of steep tariffs, and whether their de-dollarization efforts will persist despite U.S. resistance.
As the geopolitical and economic dynamics evolve, the world will be closely watching how this standoff unfolds.
