 "Donald Trump warns Brics: 'Say goodbye to America' if US dollar is replaced")
US President Donald Trump has once again threatened to impose 100 per cent tariffs on Brics nations, including India, if they attempt to introduce an alternative to the US dollar.
In a post on X, from his social media platform Truth Social, Trump said, “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER.”
Expressing strong opposition to the potential creation of a Brics currency, the US President said, “We are going to require a commitment from these seemingly hostile 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% tariffs and should expect to say goodbye to selling into the wonderful US economy.”
Brics, a grouping of nations that includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, has been exploring alternatives to the US dollar for trade.
“They can go find another sucker nation. There is no chance that Brics will replace the US dollar in international trade or anywhere else, and any country that tries should say hello to tariffs and goodbye to America!” Trump said. ALSO READ: Birthright citizenship meant for slaves' kids, not global migrants: Trump
His warning follows similar remarks earlier this month when he cautioned Brics against steps that could contribute to “de-dollarisation” of the global economy. “They (Brics) tried to do a number on the United States, and if they do that, they are not going to be happy about what’s going to happen to them,” he said during an interaction with reporters in the Oval Office.
This also follows a previous warning in December last year, when he threatened punitive tariffs if the bloc proceeded with efforts to move away from the US dollar.
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Reacting to Trump’s statements, External Affairs Minister S Jaishankar clarified that India does not support replacing the US dollar but has sought “workarounds” to protect its trade interests. He also said there are currently no proposals for a Brics currency.
Despite the US dollar being the dominant currency in global trade—accounting for over 90 per cent of transactions—other widely used currencies, such as the Japanese yen, euro, and British pound, also hold significance. While the US has not opposed their use, a Brics currency, if introduced, would provide an alternative for member nations to conduct trade with reduced reliance on a single currency.
Brics pushes for de-dollarisation
Brics nations have been making efforts to decrease reliance on the US dollar. At the 15th Brics Summit in 2023, Russian President Vladimir Putin emphasised the need for de-dollarisation, saying, “Brics countries must expand settlements in national currencies and enhance cooperation between banks.” In June 2024, during a meeting in Nizhny Novgorod, Russia, Brics foreign ministers expressed support for the “enhanced use of local currencies in bilateral and multilateral trade and financial transactions between the member countries.”
(With agency inputs)