President-elect Donald Trump has warned that countries within the BRICS alliance—a group of emerging economies backed by China and Russia—will face 100% tariffs if they attempt to create a new currency to challenge the U.S. dollar.
“The BRICS countries trying to move away from the Dollar while we stand by and watch is OVER,” Trump declared on Truth Social on Saturday. “These countries must commit to refraining from creating a new BRICS currency or supporting any alternative to replace the mighty U.S. Dollar. Otherwise, they will face 100% tariffs and lose access to the incredible U.S. economy.”
Also See: Nigeria Set to Join BRICS, May Consider Trading Crude Oil in Naira
BRICS Expansion and Currency Ambitions
BRICS originally included Brazil, Russia, India, China, and South Africa. In 2023, it expanded for the first time in over a decade, admitting Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt. South African Foreign Minister Naledi Pandor indicated that 34 more nations have expressed interest in joining the group, underscoring its growing influence.
In 2023, Brazilian President Luiz Inácio Lula da Silva proposed creating a shared currency for South America to reduce reliance on the U.S. dollar. Proponents argue that using BRICS currencies and independent banking networks could help countries like Russia, China, and Iran bypass Western sanctions. However, experts suggest that economic and political differences within the alliance make the likelihood of a unified currency slim.
Strategic Implications for China and Russia
For China, an expanded BRICS alliance presents an opportunity to strengthen economic ties and challenge U.S. global leadership. For Russia, the group offers crucial diplomatic and economic connections as Western countries continue to isolate it over the 2022 invasion of Ukraine. Russia currently holds the BRICS chairmanship and has used the platform to project global influence alongside China.
At the October BRICS summit, Russian President Vladimir Putin and Chinese leader Xi Jinping emphasized that the alliance represents a “global majority,” countering what they view as Western dominance.
Trump’s Broader Tariff Strategy
Trump’s warning follows his recent pledge to implement significant tariff increases on goods from Mexico, Canada, and China as part of a broader economic and border security policy. He cited illegal immigration, crime, and drug trafficking as primary concerns.
After the announcement, Trump spoke with Mexican President Claudia Sheinbaum, though their statements about the conversation differed. Meanwhile, Canadian Prime Minister Justin Trudeau met with Trump at his Mar-a-Lago estate, describing their discussion as “excellent,” while Trump called it “very productive.”
This latest stance on BRICS reflects Trump’s broader strategy to reinforce U.S. economic dominance and deter global challenges to the dollar.
