President-elect Donald Trump has issued a stark warning to the BRICS nations, threatening them with a 100% tariff on their exports to the United States if their efforts to weaken the US dollar proceed.
Trump took to his Truth Social platform to express his concerns, stating, “We require a commitment… that they will neither create a new BRICS Currency, nor back any other currency to replace the mighty US Dollar or, they will face 100 percent tariffs.” The BRICS group includes Brazil, Russia, India, China, South Africa, and several other countries.
The warning comes after a BRICS summit held in Kazan, Russia, where the member nations discussed initiatives to reduce their reliance on the US dollar in international transactions and to strengthen local currencies. The summit also featured talks on boosting non-dollar transactions and expanding banking networks within the group.
Since its inception in 2009, BRICS has grown to include new members such as Iran, Egypt, and the UAE, and now represents a significant portion of the world’s economic output. At the Kazan summit, Russia managed to secure a joint declaration supporting the enhancement of correspondent banking networks and the promotion of settlements in local currencies as part of the BRICS Cross-Border Payments Initiative.
However, Russian President Vladimir Putin dismissed the idea of creating a unified BRICS currency or launching a rival to the SWIFT financial messaging system, which is based in Belgium. “We have not created, nor are we creating any alternatives to SWIFT,” Putin said. “As for a unified BRICS currency, we are not considering that question at the moment.”
Trump, known for his protectionist policies, has made it clear that any attempts by BRICS nations to challenge the dominance of the US dollar will result in dire consequences. He warned that the countries would “say goodbye to selling into the wonderful US economy” if they continued their plans. “They can go find another ‘sucker!’ There is no chance that the BRICS will replace the US Dollar in international trade, and any country that tries should wave goodbye to America,” Trump added.
