By Former US President Donald Trump has delivered a strong warning to the BRICS nations, stating that any effort to replace the US dollar as the global reserve currency would face serious repercussions. In a Truth Social post on Thursday, Trump reaffirmed a threat he first made in November 2024, pledging to enforce 100% tariffs on any BRICS nation attempting to challenge the dollar’s supremacy.
Trump’s warning comes amid increasing talks within the BRICS alliance—which consists of Brazil, Russia, India, China, and South Africa, along with newer members like Egypt, Ethiopia, Iran, and the UAE—about reducing their dependence on the US dollar. These nations have been seeking alternatives, especially in response to Western sanctions on Russia following its invasion of Ukraine.
Trump’s Warning to BRICS: “Say Goodbye to America” if You Challenge the US Dollar
In his statement, Trump reinforced his tough stance, declaring, “We will demand a commitment from these seemingly hostile countries that they will neither create a new BRICS currency nor support any other currency to replace the mighty U.S. Dollar—otherwise, they will face 100% tariffs.” The former president warned of serious economic consequences for those attempting to challenge the dollar’s dominance, adding, “BRICS has no chance of replacing the U.S. Dollar in international trade or anywhere else, and any country that tries should prepare for tariffs and bid farewell to America!”
Trump’s remarks coincided with Canada and Mexico awaiting his decision on whether to implement a pledged 25% tariff on their goods, set to take effect on February 1, 2025. These tariffs are part of his broader strategy to combat illegal drug trafficking, particularly fentanyl, and address illegal immigration.
The Growing Push for Alternatives to the Dollar
The US dollar has maintained its status as the world’s primary reserve currency, supported by the strength of the US economy, strict monetary policies, and significant global influence. However, the BRICS nations have been advocating for alternatives, pointing to economic fragmentation and a growing desire for financial independence from US-dominated systems.
A 2024 study by the Atlantic Council’s GeoEconomics Centre confirmed that the US dollar remains the dominant global reserve currency, with neither the euro nor BRICS nations’ currencies making significant progress in challenging its influence in global trade. The research underscores the continued reliance on the dollar for international transactions and reserves, despite increasing calls for diversification.
The BRICS coalition was originally established in 2009 as an informal platform for Brazil, Russia, India, China, and South Africa to counterbalance a global order dominated by the United States and its Western allies. The term “BRIC” was first coined in 2001 by Goldman Sachs economist Jim O’Neill, who highlighted the economic growth potential of Brazil, Russia, India, and China. South Africa joined the group in 2010, expanding it to BRICS.
In 2023, the BRICS bloc expanded by welcoming Egypt, Ethiopia, Iran, and the UAE, with Indonesia joining earlier this month. Despite this growth, the group has yet to establish a unified currency or develop a concrete plan to replace the US dollar in global trade.
Trump’s Firm Position Against Dollar Replacement
In his post, Trump dismissed any notion that BRICS could successfully replace the US dollar in international trade. He declared, “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER.” He emphasized the necessity of maintaining the dollar’s dominance in global commerce and warned that any country attempting to challenge it would face severe economic consequences.
Trump’s continued threats against BRICS nations align with his broader approach to global trade and US economic interests, where he has frequently used tariffs as a means to pressure foreign governments.
