Donald Trump Warns BRICS Nations Of 100% Tariff If They Plan On Dollar Replacement

President-elect Donald Trump has issued a warning to BRICS nations about any plans to replace the US dollar. He is seeking assurance from the nine-member group, which includes India, Russia, China, and Brazil, that they will not pursue such a move.

BRICS, established in 2009, is the only major international group excluding the United States. Other members include South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.

Over recent years, some BRICS members, particularly Russia and China, have explored alternatives to the US dollar or considered creating a BRICS currency. However, India has not participated in these discussions. Trump expressed his concerns on Truth Social, stating that the idea of BRICS countries moving away from the dollar while the US remains passive is unacceptable.

BRICS Currency Proposal

During the 2023 summit in South Africa, BRICS countries agreed to examine the possibility of a new common currency. This proposal was introduced by Brazilian President Luiz Inacio Lula de Silva. Despite this development, India has maintained its stance against de-dollarisation within BRICS.

Trump further warned that any attempt to create a new BRICS currency or support another currency to replace the US dollar would result in severe consequences. "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 U.S. Dollar or they will face 100% Tariffs and should expect to say goodbye to selling into the wonderful U.S. Economy," he stated.

India's Position on De-dollarisation

India's External Affairs Minister S Jaishankar addressed concerns about de-dollarisation during an appearance at the Carnegie Endowment for International Peace. He clarified India's position by stating that India has never actively targeted the dollar as part of its economic or strategic policies. "I think you have us confused for someone else because we have never actively targeted the dollar," Jaishankar said.

Jaishankar also highlighted practical challenges faced by India in trade due to dollar-related issues. He mentioned that some trade partners lack access to dollars, prompting India to explore alternative settlement methods. "Sometimes you make it difficult in the use of dollars," he noted, referring to policies that complicate trade with certain partners.

In response to Trump's remarks, Jaishankar emphasised India's focus on conducting business without malicious intent towards the dollar. He acknowledged that while rebalancing trade and economic needs might involve currency considerations, India's approach remains pragmatic and non-confrontational.

The ongoing discussions within BRICS about currency alternatives reflect broader global economic dynamics. As countries navigate these complexities, India's balanced stance underscores its commitment to maintaining stable international relations while addressing domestic economic challenges effectively.