US President-elect Donald Trump has issued a stern warning to Brics member countries and their allies, threatening to impose 100 per cent tariffs if they proceed with plans to introduce or support a currency to replace the US dollar in international trade.
Trump’s statement was made on his social media platform, Truth Social, on Saturday, targeting the bloc’s ongoing efforts to challenge the dominance of the dollar.
Trump demanded a formal assurance from the Brics nations, which include Brazil, Russia, India, China, and South Africa, alongside newer members such as Iran, Egypt, Ethiopia, and the UAE.
He stated, “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 per cent Tariffs.”
He further warned that any such move would result in the countries losing access to the US economy, saying, “They should expect to say goodbye to selling into the wonderful US Economy.”
Trump dismissed the possibility of the Brics nations successfully challenging the dollar’s dominance, adding, “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.”
The Brics bloc has been exploring ways to reduce dependency on the US dollar, discussing the creation of a shared currency to facilitate trade among member nations. This initiative has been viewed as a direct challenge to the dollar’s supremacy in global trade and finance. Proponents argue that such a currency would protect their economies from the volatility of US sanctions and monetary policies.