President-elect Donald Trump issued a stark warning on Saturday, threatening to impose “100% tariffs” on BRICS nations—Brazil, Russia, India, China, South Africa, along with recent members Egypt, Ethiopia, Iran, and the United Arab Emirates—if they attempt to replace or move away from the U.S. dollar.
Trump took to Truth Social to voice his concerns, stating, “The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER.” He further demanded a commitment from these nations to neither create a new BRICS currency nor back any other currency to rival the U.S. dollar. “They will face 100% tariffs and should expect to say goodbye to selling into the wonderful U.S. economy,” he warned.
Reaffirming the dominance of the dollar, Trump wrote, “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. They can go find another ‘sucker!'”
Background on BRICS Dollar Alternatives
The BRICS bloc has long discussed reducing reliance on the U.S. dollar, particularly after the U.S. imposed harsh sanctions on Russia following its 2022 invasion of Ukraine. These discussions have gained momentum, according to Politico. While the goal of replacing the dollar has faced internal disputes among the group’s nations, the idea continues to gain traction. The U.S. dollar remains the most widely used currency in the global economy.
Tariffs Threatened on Mexico and Canada
In addition to the BRICS nations, Trump has also threatened to impose a 25% tariff on Mexico and Canada, citing concerns over illegal immigration and the flow of drugs across the northern and southern borders.
Trump has since spoken with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. Sheinbaum expressed optimism that a tariff war could be avoided, while Trump described his conversation with Trudeau as “very productive.” However, no specific decisions regarding tariffs have been disclosed by either leader.
Implications of Trump’s Stance
Trump’s aggressive trade rhetoric underscores his commitment to protecting the U.S. dollar’s supremacy in global markets and his willingness to use tariffs as a tool to address both economic and geopolitical concerns. The proposed measures could have significant implications for international trade relationships and economic stability, particularly for nations heavily reliant on access to the U.S. market.
