President-elect Donald Trump has warned that the BRICS nations will face 100% tariffs on their exports to the United States if they attempt to create a reserve currency to compete with the US dollar. Trump made the declaration on Saturday via his Truth Social platform, signaling a hardline stance against any effort to diminish the dollar’s dominance in global trade.
“The idea that the BRICS countries are trying to move away from the dollar while we just sit and watch is over,” Trump wrote. He further stated that he would demand a guarantee from BRICS members not to develop or support an alternative currency, threatening severe economic penalties if they refused.
“They can go find another ‘sucker!’” Trump added. “The US dollar will remain unmatched in international trade, and any country challenging it should prepare to wave goodbye to America.”
BRICS, initially formed by Brazil, Russia, India, China, and South Africa, expanded in January to include Egypt, Iran, Ethiopia, and the UAE, with nearly 30 other nations showing interest in joining the coalition. As the group grows, so does its ambition to reduce reliance on the dollar in global commerce.
In 2022, Russia floated the idea of creating a BRICS currency, a proposal that Brazilian President Luiz Inacio Lula da Silva endorsed as a way to protect member states from the volatility of dollar exchange rates. At a recent summit in Kazan, Russia, however, BRICS leaders stopped short of announcing a shared currency. Instead, they focused on establishing a cross-border payment system and increasing the use of local currencies in trade agreements.
Kremlin spokesperson Dmitry Peskov clarified that BRICS initiatives are not directed against any specific currency. “Our goal is to prioritize the economic interests of our member countries,” he explained. Russian President Vladimir Putin also argued that local currency use in trade helps isolate economic growth from geopolitical tensions.
Tariffs have long been a cornerstone of Trump’s approach to trade and foreign policy, and his warnings to BRICS are consistent with his broader economic strategy. Trump has proposed a 20% tariff on all imports to address the US trade deficit and to bring manufacturing jobs back to American shores.
He has also threatened Canada and Mexico with additional 25% tariffs unless they take stronger measures to curb drug trafficking and illegal immigration. On China, Trump pledged to impose a further 10% tariff on goods until Beijing cracks down on the production and export of fentanyl, a synthetic opioid fueling a drug crisis in the US.
