Donald Trump Issues Stern Warning to BRICS: ‘Alternative Currency Will Lead to 100% Tariffs

U.S. President-elect Donald Trump has issued a stern warning to the BRICS nations—Brazil, Russia, India, China, and South Africa—demanding commitments that they will not pursue the creation of a new currency to challenge the dominance of the U.S. dollar. In a fiery post on his Truth Social network on Saturday, Trump reiterated his pledge to impose a 100% tariff on nations that attempt to move away from the dollar.

“The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump declared. “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.”

Strengthening the Dollar’s Dominance

Trump has consistently emphasized his commitment to maintaining the U.S. dollar’s position as the world’s reserve currency. During a March interview with CNBC, he underscored the economic importance of the dollar, stating, “I would not allow countries to go off the dollar because it would be a hit to our country.”

The president-elect has also made it clear throughout his campaign that any efforts to diminish the dollar’s global influence would be met with significant repercussions. His proposals include imposing tariffs, export controls, and even accusations of currency manipulation to deter allies and adversaries from engaging in bilateral trade in alternative currencies.

BRICS Currency Talks Raise Concerns

Trump’s warnings come amid growing speculation that the BRICS nations are exploring alternatives to the dollar for trade and international transactions. This initiative is seen as part of a broader effort to reduce dependency on the dollar-dominated global financial system, particularly in light of sanctions and trade restrictions imposed by the U.S.

The potential creation of a BRICS-backed currency has fueled concerns in Washington, as it could weaken the dollar’s role in global trade and financial markets. Trump’s latest comments highlight his administration’s determination to counter any moves that threaten the dollar’s supremacy.

Economic Impact and Policy Plans

Trump’s team of economic advisers is reportedly exploring a range of measures to enforce his stance, including:

•Export Controls: Restricting exports to countries that bypass the dollar in trade.

•Tariffs: Imposing steep tariffs on nations engaging in alternative currency deals.

•Currency Manipulation Accusations: Pressuring countries diplomatically and economically for their currency practices.

These policies signal a more aggressive approach to preserving the U.S. dollar’s dominance in global markets, setting the stage for potential trade tensions with BRICS nations and others exploring de-dollarization strategies.

Looking Ahead

As Trump prepares to retake office in January, his administration’s economic policies are poised to have far-reaching implications for global trade and diplomacy. While his threats are aimed at preserving the U.S. dollar’s primacy, they risk escalating tensions with key international partners.

The BRICS nations have yet to respond formally to Trump’s demands, but the issue of de-dollarization remains a contentious topic that could shape global economic policies in the years ahead. With Trump’s plans to enforce his economic agenda through tariffs and other measures, his presidency could usher in a new era of financial and geopolitical challenges.