President-elect Donald Trump announced a hardline stance against the BRICS alliance, warning member nations to abandon any plans for a new currency or face 100% tariffs on exports to the U.S.
“The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump declared on Truth Social Saturday afternoon. “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.”
Expanding BRICS Alliance Fuels Concerns
BRICS, initially comprising Brazil, Russia, India, China, and South Africa, expanded in 2023 to include Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt—the first enlargement in over a decade. Over 30 additional countries have expressed interest in joining the bloc, according to South African Foreign Minister Naledi Pandor.
The alliance has increasingly explored alternatives to the U.S. dollar, with leaders like Brazil’s Luiz Inácio Lula da Silva proposing a shared South American currency to reduce reliance on the greenback. Such moves have raised alarms in Washington, as circumventing the dollar-based system could allow BRICS members, including Russia, China, and Iran, to bypass Western sanctions.
While the creation of a new BRICS currency faces hurdles due to the economic and geopolitical differences among member nations, the group’s expansion signals a push to challenge U.S. global influence. China seeks to strengthen partnerships with key players, and Russia, economically isolated after its 2022 invasion of Ukraine, views BRICS as a critical platform to counter Western dominance.
Trump’s Broader Tariff Strategy
The BRICS-related announcement follows Trump’s recent pledge to impose steep tariffs on goods from Mexico, Canada, and China as part of his strategy to combat illegal immigration and drug trafficking.
Last week, Trump spoke with Mexican President Claudia Sheinbaum for the first time since the tariff announcement, though conflicting statements about their conversation have emerged. Canadian Prime Minister Justin Trudeau, meanwhile, traveled to Mar-a-Lago for a dinner meeting with Trump on Friday, describing it as an “excellent conversation,” while Trump called it a “very productive meeting.”
Rising Tensions Ahead
Trump’s escalating economic threats highlight his intention to leverage tariffs as a tool to maintain U.S. economic dominance and deter geopolitical shifts that could undermine the dollar’s central role. As the BRICS bloc grows and explores new financial strategies, Trump’s approach signals heightened tensions in an increasingly multipolar global economy.
