The United States President-elect, Mr Donald Trump, has issued stern warning to the BRICS nations, vowing to impose 100% tariffs on their goods if they pursue efforts to diminish the role of the U.S. dollar in global trade.
He gave the warning in a statement posted on his official Facebook page on Sunday morning.
Though, this was in response to initiatives aimed at challenging the dollar’s dominance as the world’s primary reserve currency.
He said, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote. “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. They can go find another ‘sucker!’ There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
The BRICS nations, which comprises Brazil, Russia, India, China, and South Africa, recently extended their tentacles to include Egypt, Ethiopia, Iran, and the UAE in the last three months, have been plotting to cut down the influence of the United States dollar in the global market.
Moreover, with these additions, the alliance now accounts for 45% of the global population. Other nations, including Turkey, Azerbaijan, and Malaysia, have also applied for membership.
During BRICS summit in October, Russian President Vladimir Putin accused the United States of “weaponizing” the dollar, calling it a “big mistake,” according to the Associated Press.
Trump’s tariff threats have drawn scrutiny both domestically and internationally. Tariffs, which act as taxes on imported goods, often lead to higher prices for consumers as importers typically pass on the additional costs.
In his first term, Trump’s use of tariffs created tensions with major U.S. trading partners, and studies showed the economic burden largely fell on American households.
Experts warn that Trump’s broader tariff plans could increase inflation and slow economic growth in the United States. Goldman Sachs recently projected that such measures could raise inflation by up to 1.2% in 2025.
Beyond the BRICS nations, Trump has also threatened tariffs against Mexico, Canada, and China if they fail to cooperate on addressing issues like illegal immigration and the fentanyl crisis. Trump proposed levies of 25% on imports from Mexico and Canada and 10% on goods from China.