Washington, D.C. (Agencies): U.S. President-elect Donald Trump has threatened BRICS nations with 100% tariffs if they decide to challenge the U.S. dollar’s dominance in the global economy. BRICS, an acronym for the emerging national economies of Brazil, Russia, India, China, and South Africa, has been exploring alternatives to the dollar for years.
“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump wrote in a social media post early Sunday. He demanded a commitment from these countries that they will neither create a new BRICS currency nor back any other currency to replace the U.S. dollar. Failure to comply, he warned, would result in 100% tariffs and the loss of access to the U.S. economy.
Despite ongoing efforts, global de-dollarization has seen limited success, with most cross-border transactions involving BRICS members still invoiced in dollars. The stability and widespread use of the dollar continue to reinforce its dominant role in international trade.
Trump’s threats extend beyond BRICS. He has also proposed 25% tariffs on all imports from Canada and Mexico, including Canadian oil, to address issues related to drugs and illegal migration. Analysts warn that such tariffs could drive up fuel prices for Americans, particularly in the Midwest, where refineries process a significant portion of Canadian crude imports.