Trump Threatens 100% Tariffs on BRICS Countries Over New Currency Plans

Trump Threatens 100% Tariffs on BRICS Countries Over New Currency Plans

President-elect Donald Trump has issued a stark warning to the BRICS nations—Brazil, Russia, India, China, and South Africa—threatening 100% tariffs if they move forward with plans to create a new currency that could rival the U.S. dollar.

In a post on Truth Social, Trump declared, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these 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 and should expect to say goodbye to selling into the wonderful U.S. Economy.”

The Growing BRICS Bloc

The BRICS group, which initially included Brazil, Russia, India, China, and South Africa, expanded in 2023 to include Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt. South African Foreign Minister Naledi Pandor revealed that 34 additional countries have expressed interest in joining the bloc, signifying its growing influence in global geopolitics and economics.

BRICS nations have explored ways to reduce their reliance on the U.S. dollar, including the possibility of creating a shared currency. This idea gained traction in 2023 when Brazil’s President Luiz Inácio Lula da Silva proposed a common currency for South America. However, while the concept remains a topic of discussion, experts suggest that significant economic and geopolitical differences among member countries make the likelihood of a new BRICS currency slim.

A Challenge to U.S. Global Leadership

A currency outside the U.S. dollar-dominated system could allow member states like Russia, China, and Iran to bypass Western sanctions, posing a challenge to American economic leverage. For China, the expanding BRICS bloc offers an opportunity to strengthen alliances and contest U.S. global dominance. Similarly, Russia benefits from BRICS partnerships, especially as it remains economically and diplomatically isolated by the West due to its 2022 invasion of Ukraine.

At the October BRICS summit, Russian President Vladimir Putin and Chinese leader Xi Jinping emphasized a narrative of Western isolation, promoting their bloc as a counterbalance to American influence.

Trump’s Economic Aggression

Trump’s tariff threat is the latest in a series of bold economic measures he has promised. Days earlier, he announced plans to impose steep tariffs on goods from Mexico, Canada, and China on his first day in office. The proposed tariffs, according to Trump, are aimed at curbing illegal immigration and addressing the flow of drugs and crime across U.S. borders.

While Trump has already engaged with leaders of neighboring nations following his tariff announcements, the outcomes have been mixed. After speaking with Mexican President Claudia Sheinbaum, both sides offered conflicting accounts of the discussion. Meanwhile, Canadian Prime Minister Justin Trudeau met Trump at Mar-a-Lago, describing their dinner as “an excellent conversation,” while Trump labeled it “very productive.”

The Global Stakes

Trump’s threat to BRICS nations underscores his focus on defending the U.S. dollar’s dominance and protecting American economic interests. However, escalating tensions with a coalition as influential as BRICS could have far-reaching implications, potentially triggering shifts in global trade dynamics and alliances.

As Trump prepares to take office, his hardline stance on tariffs and global currency competition sets the stage for contentious economic battles ahead. The world will be watching closely to see how these strategies unfold and what impacts they have on the international order.