President-elect Donald Trump on Saturday, November 30, warned BRICS countries, including India, Russia, China, and Brazil, against any plans to replace the US dollar and urged the nine-member group to commit to supporting it.
President-elect Trump has issued a strong warning to BRICS nations, stating they will face 100% tariffs if they attempt to introduce a new currency to compete with the U.S. dollar.
He declared that the idea of BRICS countries moving away from the U.S. dollar while the U.S. does nothing is over. Trump emphasized that the U.S. will require these nations to commit to not creating a new BRICS currency or supporting any other currency intended to replace the U.S. dollar.If they refuse, they will face steep tariffs and lose access to the U.S. economy. Trump stated that any country attempting to undermine the dollar will no longer be able to sell goods to the United States and must look elsewhere, calling them out to “find another sucker.”
He firmly believes there is no chance the BRICS nations can replace the U.S. dollar in international trade and warned that countries attempting this should prepare to sever ties with America.
India, a key member of BRICS, has said it is against de-dollarization.
India’s External Affairs Minister, S. Jaishankar, spoke at the Carnegie Endowment for International Peace in the fall, addressing the topic of the dollar. He clarified that India has never aimed to replace the dollar as part of its economic, political, or strategic policies, though some other countries may have considered it.
Jaishankar explained that while India does not seek to target the dollar, it faces challenges with trade partners who do not have dollars to trade. India sometimes has to find alternative ways to settle deals when this happens. He also mentioned that while some U.S. policies make it harder to use dollars in trade, India seeks solutions to keep doing business and maintain its economic balance.
Earlier, BRICS Announces New Banknote for Shared Currency
At the BRICS summit held earlier in October, Russian President Vladimir Putin announced plans to introduce a new banknote as part of a proposed common currency for the BRICS nations—Brazil, Russia, India, China, and South Africa. This move aims to reduce the reliance on the U.S. dollar in international trade and financial transactions within the bloc. The introduction of this shared currency is seen as a strategic effort to enhance economic independence and create an alternative to the dollar-dominated global financial system. The specifics of the banknote and the potential timeline for the currency’s implementation were not fully detailed, but the announcement marked a significant step towards closer financial cooperation among the BRICS countries.
