Donald Trump Threatens High Tariffs on BRICS for Moving Away from U.S. Dollar

Donald Trump Threatens High Tariffs on BRICS for Moving Away from U.S. Dollar

U.S. President Donald Trump has warned the BRICS nations that they could face 100% tariffs if they continue efforts to reduce their dependence on the U.S. dollar. His strong stance has sparked debates among global economists and diplomats.

Trump’s Warning

In a series of posts on Truth Social, Trump stressed that the U.S. dollar must remain the dominant global currency. He said, “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.”

Donald Trump Threatens High Tariffs on BRICS for Moving Away from U.S. Dollar

Trump issued his warning to BRICS while Canada and Mexico await his decision on whether to follow through with his pledge to impose 25% tariffs on the United States’ North American trading partners starting February 1.

President Donald Trump announced that he plans to impose a 25% tariff on imports from Canada and Mexico, starting Saturday. However, he is still deciding whether to include oil from these countries in the tariff plan. Trump said that the decision will be based on whether the oil prices from Canada and Mexico are fair, although he also linked the tariffs to his broader goals of reducing illegal immigration and stopping the smuggling of fentanyl chemicals.

The potential tariffs on oil from these two countries could complicate Trump’s promise to lower inflation, especially since higher energy costs could lead to rising gasoline prices. This is a key issue for Trump, who made reducing energy prices a central part of his presidential campaign, with a goal to halve energy costs within his first year in office. If oil tariffs are imposed, it could lead to the opposite effect, increasing prices instead.

This threat is part of Trump’s broader economic agenda, which focuses on protecting American financial influence and preventing alternative currency systems from gaining traction.

Why BRICS Is Moving Away from the Dollar

The BRICS alliance—which includes Brazil, Russia, India, China, South Africa, and newer members Egypt, Ethiopia, Iran, and the UAE—has been exploring ways to trade in national currencies instead of relying on the U.S. dollar. These discussions have gained momentum since the 2008 financial crisis, as some countries seek to reduce U.S. economic influence in global trade.

Reactions from BRICS Nations

BRICS members have responded differently to Trump’s threats:

Russia has been one of the strongest advocates for reducing reliance on the dollar, particularly after Western sanctions in recent years.

China is also pushing for de-dollarization, given its tensions with the U.S., but it remains a major trading partner with America.

India, on the other hand, has taken a more cautious approach, balancing its ties with both BRICS and the U.S.

Other BRICS members are weighing their options, considering both economic opportunities and risks associated with challenging the dollar’s dominance.

Economic and Market Impact

Trump’s tariff threats could significantly impact global trade, particularly for major economies like China and India, which rely on exports to the U.S. Analysts are split on the potential effects:

Short-term boost for the dollar – Some believe that Trump’s stance might strengthen the U.S. dollar temporarily, as countries may hesitate to shift away from it.

Long-term risk of de-dollarization – Others warn that such aggressive policies could push more nations to speed up their efforts to create alternative financial systems.

Trade disruptions – If Trump enforces 100% tariffs, it could lead to rising costs for American consumers and businesses that rely on imports from BRICS nations.

What’s Next?

Trump’s tough stance against BRICS highlights the ongoing struggle for financial power in the global economy. If BRICS nations move forward with their plans, the world could see major shifts in international trade and currency use. Whether these threats will force BRICS to reconsider their strategies or push them toward faster de-dollarization remains uncertain.

Update

India’s Foreign Ministry has clarified that there is currently no specific strategy or policy in place for de-dollarization. Additionally, discussions are ongoing between India and the US regarding an upcoming visit of Prime Minister Modi to the United States, with dates still being finalized.

Update

Canadian Prime Minister Justin Trudeau said that if former U.S. President Donald Trump imposes tariffs on Canada, the government is fully prepared to respond. He emphasized that any countermeasures would be strong, immediate, and carefully planned to protect Canada’s interests. Trudeau made it clear that Canada would not hesitate to take decisive action if necessary.

He also stated that any response would be fair across the country and that Canada would continue to act until the tariffs are removed, with all options being considered. Additionally, he warned that the country could face challenging times in the coming days and weeks.

Update

Trump is expected to impose tariffs on Canada and Mexico starting March 1, according to Reuters cites sources. He is also likely to announce a process allowing countries to request exemptions for certain imports. However, an administration official stated that while some exemptions might be granted, they will be rare.

Update

White House has stated that Reuters’ report on tariffs is incorrect. Trump will impose 25% tariffs on Mexico and Canada, and 10% on China starting tomorrow.

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