Former President Donald Trump has issued a stark warning to the BRICS nations — Brazil, Russia, India, China, and South Africa — amid growing discussions within the group to move away from the US dollar in global trade. Trump has threatened to impose a 100% tariff on goods from these nations if they take steps to ban or reduce the use of the US dollar in favor of alternative currencies.
The BRICS bloc, which has been exploring the potential of a new currency system, has seen increasing support for reducing its reliance on the US dollar. Trump, speaking at a rally in the United States, stated, “If they want to undermine the dollar, they’ll face a tariff like no one has ever seen before — 100%. No country is bigger than the US.”
The US dollar has long been the dominant global currency for trade, but the BRICS nations have been pushing for greater economic autonomy by creating their own payment systems and moving away from dollar-centric transactions. If the move gains traction, it could have significant implications for the global financial system, affecting everything from trade relations to currency values.
Trump’s warning has raised concerns over the potential for an economic showdown between the US and the BRICS nations. Economists are divided on whether such drastic measures could backfire, further isolating the US in global trade or whether the threat could force BRICS countries to reconsider their strategies.
As of now, no formal agreements have been made by BRICS countries, but the growing calls for a shift away from the US dollar mark a turning point in global economic discussions. Trump’s threat is likely to escalate tensions as these nations navigate their options.
