Trump brands BRICS “fading out fast,” renews 10% tariff warning

Donald Trump accused BRICS nations of plotting to erode the US dollar’s dominance and announced that he has instructed officials to impose a 10% tariff on any country aligned with the bloc.

“We have this little group called BRICS, which is fading out fast… they wanted to try and take over the dollar,” Trump said during a signing event for new cryptocurrency regulations at the White House.

Trump claimed that, following his earlier tariff threats, BRICS leaders appeared to abandon their initiatives: “They didn’t want to be tariffed… I hit them very, very hard, and it will end very quickly. I don’t think they’ll do it. They’re virtually afraid to meet.” He reiterated his August 1 deadline for imposing tariffs, stating no exceptions will be made.

Trump’s remarks mark his second public warning this month. In early July, he issued a similar 10% tariff threat on BRICS nations, specifically targeting those “seeking to challenge the dollar.”

BRICS is a bloc of major emerging economies—Brazil, Russia, India, China, and South Africa—formed to advance peace, development, and a multipolar world order in global governance.

The billionaire-turned-politician has previously threatened tit-for-tat tariffs, including a 100% levy in 2024 if the bloc pursued an alternate currency, and even suggested a 150% punishment tariff at one point.

BRICS leaders have defended their actions, asserting they are not anti-American. Their recent joint statement emphasized concern about “unilateral tariff and non-tariff measures” that distort global trade and contravene WTO rules.

India’s MEA spokesperson made it clear on July 17 that de-dollarization was not on the official BRICS agenda, although promoting local currencies for cross-border payments remains under discussion.

These escalating tensions have sparked international concern. Analysts warn that unpredictable US tariff threats could undermine the dollar's status as the world’s reserve currency.

While the dollar still commands over 58% of global reserves, growing de-dollarization efforts among BRICS and other economies are testing its stronghold.