U.S. President-elect Donald Trump on Saturday demanded that BRICS member countries commit to not creating a new currency or supporting another currency that would replace the United States dollar or face 100% tariffs.
At the recent Brics summit held in Kazan, Russia, discussions centred on boosting non-dollar transactions and strengthening local currencies.
Russian President Vladimir Putin accused the US of “weaponising” the dollar, calling it a “big mistake.”
He stated, “It’s not us who refuse to use the dollar. But if they don’t let us work, what can we do? We are forced to search for alternatives.”
Despite this, Putin clarified that the bloc is not currently considering a unified Brics currency or creating an alternative to the ‘Swift’ payment system.
However, Trump’s statement, made on his social media platform, Truth Social, on Saturday, targeted the bloc’s ongoing efforts to challenge the dominance of the dollar.
Trump demanded a formal assurance from the Brics nations, which include Brazil, Russia, India, China, and South Africa, alongside newer members such as Iran, Egypt, Ethiopia, and the UAE.
He stated, “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 US Dollar, or they will face 100 per cent Tariffs.”
He further warned that any such move would result in the countries losing access to the US economy, saying, “They should expect to say goodbye to selling into the wonderful US Economy.”
Trump dismissed the possibility of the Brics nations successfully challenging the dollar’s dominance, adding, “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.”
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Some analysts see the BRICS’ initiative as a direct challenge to the dollar’s supremacy in global trade and finance.
Proponents argue that such a currency would protect their economies from the volatility of US sanctions and monetary policies.
However, reports indicate that the Brics group’s financial platforms, such as the New Development Bank and the Contingent Reserve Arrangement, currently focus on supporting sustainable development and financial stability rather than launching a unified currency.
Trump’s protectionist stance has extended to other countries as well, with previous threats of 25 per cent tariffs on goods from Mexico and Canada, and 10 per cent tariffs on Chinese imports, aimed at addressing trade imbalances and illegal immigration.
Research by the Atlantic Council indicates that the US dollar’s role as the primary global reserve currency remains “secure in the near and medium term,” accounting for roughly 58 per cent of the world’s foreign exchange reserves.
Major commodities like oil also continue to be traded primarily in dollars, reinforcing its dominance despite growing calls for de-dollarisation from the Brics bloc and other developing nations.
