The United States is escalating tensions with the BRICS economic alliance, with President Donald Trump issuing a stern warning against the bloc’s efforts to create an alternative global currency.
In a statement posted on Truth Social, Trump threatened 100% tariffs and restricted market access for BRICS nations if they continued their push to move away from the U.S. dollar in global trade.
“The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is over,” Trump declared, vowing retaliation against what he described as “seemingly hostile countries.”
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His remarks, nearly identical to a statement he made on November 30, highlight growing U.S. anxiety over BRICS’ increasing economic influence. The bloc—originally formed by Brazil, Russia, India, China, and South Africa—has since expanded to Egypt, Ethiopia, Iran, and the United Arab Emirates. Several more nations, including Turkey, Azerbaijan, and Malaysia, have applied for membership, underlining a shift in global economic power away from Western dominance.
Trump issued a direct challenge to BRICS, demanding that member nations abandon their plans for a new currency or risk severe trade penalties.
“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 percent tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy.”
He doubled down on his stance, emphasizing that any country supporting an alternative to the U.S. dollar would be shut out of American markets.
“They can go find another sucker Nation. There is no chance that BRICS will replace the U.S. dollar in international trade, or anywhere else, and any country that tries should say hello to tariffs, and goodbye to America!”
Why the U.S. Feels Threatened by BRICS
For decades, the U.S. dollar has dominated international trade, global finance, and commodity pricing, giving the U.S. immense economic leverage over other nations. However, BRICS has been actively challenging this dominance, particularly in response to Washington’s use of financial sanctions as a geopolitical weapon.
The U.S. has long used the dollar’s dominance to impose economic restrictions on nations like Russia, Iran, and China, freezing assets and limiting their ability to trade globally. BRICS has responded by promoting trade in local currencies and advancing plans for a new BRICS reserve currency, backed by a basket of member states’ national currencies. With more countries expressing interest in BRICS membership, Washington fears that a growing bloc could significantly weaken the dollar’s role in global transactions.
At a BRICS summit last October, Russian President Vladimir Putin directly accused the U.S. of “weaponizing” the dollar, calling Washington’s policies a “big mistake.”
“It’s not us who refuse to use the dollar,” Putin said. “But if they don’t let us work, what can we do? We are forced to search for alternatives.”
China, the largest economy within BRICS, has already signed multiple trade agreements with Russia, Brazil, and Saudi Arabia to conduct trade in yuan. Meanwhile, India has expanded rupee-based transactions with several BRICS nations, though Reserve Bank of India (RBI) Governor Shaktikanta Das recently stated that India has taken no formal steps to de-dollarize its economy.
BRICS’ Growing Power and Expansion
BRICS was originally formed in 2009 as an informal grouping of emerging market economies aiming to counterbalance Western-led institutions like the International Monetary Fund (IMF) and the World Bank. Over the years, its economic weight has grown significantly.
The bloc now represents over 40% of the global population and accounts for approximately 30% of the world’s GDP. It controls some of the largest energy reserves in the world, with Russia, Iran, and the UAE as major oil and gas producers. China and India, the world’s most populous nations, drive industrial production and emerging technology markets.
With Egypt, Ethiopia, and the UAE joining, BRICS is expanding its influence into Africa and the Middle East, increasing its access to key global trade routes. More countries—including Saudi Arabia, Indonesia, Argentina, and Nigeria—have expressed interest in membership, which could further strengthen the alliance against U.S. economic pressure.
Trump’s Trade War Strategy: A Return to Protectionism?
Trump’s latest threats align with his longstanding protectionist trade policies, which emphasize using tariffs and economic restrictions to defend U.S. industry.
During his first term, Trump imposed tariffs on over $360 billion worth of Chinese goods, sparking a trade war between Washington and Beijing. He also levied duties on steel and aluminum imports, even against allied nations like Canada and the EU. In addition, he withdrew from global trade agreements, arguing that they harmed American workers.
Now, as President once again, Trump has vowed to reintroduce high tariffs and establish an External Revenue Service to collect trade-related taxes.
“We will tariff and tax foreign countries to enrich our citizens,” he said.
If Trump follows through on his 100% tariff threat against BRICS nations, it could trigger a global trade war, raising costs for American consumers and businesses. It could also accelerate BRICS de-dollarization efforts, as countries seek alternatives to U.S. financial dominance.
There is also the possibility of retaliation from China and India, two of the U.S.’s largest trade partners. Some analysts believe that the U.S. risks increasing its own economic isolation as BRICS nations deepen economic ties with Europe, Africa, and Latin America.