Table of Contents
Donald Trump has stated his opposition to de-dollarization on several occasions, threatening to impose economic penalties on the BRICS nations if they do not continue to use the US dollar in international commerce.
New Delhi:
The BRICS countries were warned by US President Donald Trump on Friday that if they try to overtake the US dollar as the primary currency in international commerce, they would face 100% tariffs on their goods.
Trump has stated time and time again that he opposes de-dollarization and that the BRICS nations must continue to use the US dollar in international commerce or risk economic repercussions.
“Trump wrote, “It is OVER that the BRICS countries are attempting to abandon the dollar while we watch and do nothing about it. “We will demand that these ostensibly antagonistic nations promise not to develop a new BRICS currency or support any other currency to displace the powerful US dollar. If they do, they will be subject to 100% tariffs and should prepare to bid farewell to investing in the fantastic US economy. Go find another gullible country. The US dollar will never be replaced by BRICS in international trade or anyplace else, and any government that attempts to do so should bid America farewell and welcome tariffs.
The tweet he published on November 30, weeks after winning the 2024 presidential election, is almost exactly the same as this one.
For years, the BRICS (Brazil, Russia, India, China, and South Africa) group has been debating how to lessen its need on the US currency. Since Russia was subjected to Western sanctions after its invasion of Ukraine, the BRICS economic partnership has only grown stronger. Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates have joined BRICS in recent years.
BRICS countries have encouraged commerce in their respective currencies despite the lack of a unified currency. Russian President Vladimir Putin made a clear demand for de-dollarization at the 15th BRICS Summit in 2023, saying that the countries of the BRICS “must expand settlements in national currencies and enhance cooperation between banks.”
When member nations pushed for the use of local currencies in bilateral and multilateral commerce during the June 2024 BRICS foreign ministers’ summit in Russia, the movement gained even more traction.
The US dollar is still the most widely used reserve currency in the world, notwithstanding worries about de-dollarization. According to a research conducted last year by the Atlantic Council’s GeoEconomics Center, neither the euro nor the BRICS countries have been able to lessen the world’s need on the dollar.
The threats against BRICS follow Trump’s recent push to impose tariffs on Mexico and Canada, the United States’ largest trading partners, which he has claimed are necessary to combat illegal immigration and drug trafficking, particularly fentanyl, into the US. Trump has a history of using tariffs as leverage and is using them to maintain his dominance.
Trump referred to India as a “very big abuser” of trade policy during his campaign, and he has since used the same language to describe the other BRICS nations. He has maintained that he can decrease taxes for American workers and companies and attract industries back to the US by raising tariffs on foreign nations.
However, this strategy has been viewed with suspicion.
Economists caution that tariffs may increase prices for American companies and consumers, especially in sectors that depend on imported raw materials.
