Donald Trump threatens 100% tariff on BRICS nations if Dollar gets replaced

In what could spark a new trade war, Donald Trump has threatened to impose a 100% tariff on BRICS countries if they attempt to sideline the US dollar or replace it with another currency for international transactions.

Trump issued a stern warning in an online post on Nov 30 that he was not going to stand by and watch the BRICS 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," he posted on the Truth Social platform owned by him.

The President-elect issued a clear threat asking India, China and other nations to abandon plans to create an alternative currency or face severe economic retaliation.

"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 US Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful US Economy,” he warned.

Trump is set to return to the White House in January, raising concerns over his tough economic and immigration policies.

His remarks come after a BRICS meeting in October that discussed boosting non-dollar transactions.

The BRICS comprises Brazil, Russia, India, China, South Africa, and other countries.
During his campaign, Trump vowed to protect the dollar’s global dominance and penalize nations trying to replace it.

His latest remarks highlight his future administration's focus on economic nationalism.

The BRICS nations at their 2023 summit in Johannesburg, discussed ways to move away from the over-dependence on dollar or de-dollarization.

The movement gained momentum after US-led sanctions on Russia in 2022 highlighted the vulnerabilities of relying on the dollar in geopolitically sensitive situations.

Meanwhile, Trump’s economic team has been deliberating how to curb these efforts with measures like export controls and trade penalties.

Media reports, citing sources close to the discussions revealed that Trump is reportedly planning bold measures to safeguard the dollar's status as the world’s primary reserve currency.

In one of his interviews in March, Trump highlighted the importance of protecting the dollar, saying, “I would not allow countries to go off the dollar because it would be a hit to our country.”

On Nov 30, he reaffirmed, “There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America."