Trump Issues Stern Warning To BRICS If They Plan To Replace US Dollar With Rival Currency

Donald Trump, the former US President and a potential candidate for the 2024 elections, has issued a stern warning to BRICS nations.

He stated that these countries would face 100% tariffs if they attempt to introduce a new currency to rival the US dollar.

Photo Credit: AP/PTI

On his platform, Truth Social, Trump wrote, "We need this commitment from these hostile countries that they will neither create a new BRICS currency nor promote any other currency in place of the powerful US dollar. Otherwise, they should be prepared to face 100% tariffs and forget about dreaming of doing business in the US economy."

The BRICS group, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the UAE, is considering a new currency for international trade.

This initiative aims to lessen reliance on the US dollar. Trump's concern stems from the potential weakening of America's global financial influence due to this shift.

Foreign Minister S Jaishankar has clarified that India is not seeking to move away from the US dollar.

The focus is on facilitating trade rather than challenging the dollar's dominance. No official proposal for a new BRICS currency exists yet. India's main goal is to encourage trade in local currencies to cut down on trade expenses.

Trump has previously warned BRICS countries about severe repercussions if they oppose the dollar. His recent comments reflect ongoing tensions as BRICS explores alternatives to reduce dollar dependency.

Currently, over 90% of global trade transactions are conducted in US dollars. While currencies like the Japanese yen, euro, and British pound are also significant internationally, the US has never opposed their use.

However, BRICS aims to decrease reliance on the dollar and promote more independent trade practices.

If BRICS successfully implements its plans, it could significantly impact the US economy. This potential threat explains Trump's persistent pressure on BRICS nations regarding their currency discussions.

Tariff Measures Against Other Nations

Trump has announced a 25% tariff on Canada and Mexico but hasn't decided on tariffs for oil imports from these countries yet.

He mentioned that the US has sufficient oil resources and doesn't need external reliance. Additionally, he proposed new taxes on exporting fentanyl drug-making chemicals from China.