President-elect Donald Trump issued a stern warning on Saturday, threatening 100% tariffs on nine nations if they take actions that undermine the dominance of the U.S. dollar. His statement targeted members of the BRICS alliance, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.
The alliance, along with aspiring members such as Turkey, Azerbaijan, and Malaysia, and other interested nations, has expressed dissatisfaction with U.S. dominance in the global financial system. Despite the dollar's position as the world’s leading currency, representing approximately 58% of global foreign exchange reserves according to the IMF, BRICS nations are pushing for alternatives, including conducting trade in non-dollar currencies—a movement termed “de-dollarization.”
US universities urge Indian students to return before Trump takes office
On Truth Social, Trump demanded that these countries refrain from creating a new BRICS currency or supporting alternatives to the dollar, warning that failure to comply would result in severe tariffs and loss of access to the U.S. market.
This comes as Russian President Vladimir Putin accused the U.S. of using the dollar as a “weapon” at a recent BRICS summit, calling it a strategic mistake. Putin emphasized that Russia is compelled to explore alternatives to the dollar, citing Western sanctions and restrictions. Russia has also advocated for a new payment system to bypass SWIFT and enable sanction-free trade.
While Trump dismissed the possibility of BRICS challenging the dollar’s dominance, research indicates the U.S. currency remains secure as the leading global reserve currency in the near and medium term, according to an Atlantic Council model.
Trump picks Jay Bhattacharya, who backed COVID herd immunity, to lead National Institutes of Health
Trump’s tariff threats follow similar measures against Mexico, Canada, and China aimed at addressing illegal immigration and drug trafficking. While Mexican President Claudia Sheinbaum expressed optimism about avoiding a tariff conflict, Canadian Prime Minister Justin Trudeau returned from recent talks with Trump without assurances that Canada would be exempted from potential tariffs.