US President Donald Trump issued a stern warning on Thursday to the BRICS nations, threatening a 100% tariff on goods from member states if they attempt to replace the US dollar as the global reserve currency.
The threat echoes similar statements Trump made following his victory in the November 2024 elections.
In a post on his Truth Social platform, Trump stated, " "We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100% Tariffs," he said on his Truth social media platform.
"There is no chance that BRICS will replace the US dollar in international trade, or anywhere else, and any country that tries should say hello to tariffs, and goodbye to America!" he added.
The BRICS group, originally formed in 2009 as a counterbalance to US and Western influence, consists of Brazil, Russia, India, China, and South Africa.
In recent years, Egypt, the United Arab Emirates, Ethiopia, Iran, and Indonesia have joined, bringing the group’s membership to 11. Representing nearly half of the world’s population, BRICS is seen as a significant counterpart to the G7.
Discussions within BRICS regarding a new reserve currency have gained momentum, particularly after the West imposed sanctions on Russia due to its invasion of Ukraine.
While the US dollar continues to dominate as the primary global reserve currency, there is growing interest among BRICS nations to explore alternatives.
Amidst these tensions, Trump also confirmed that 25% tariffs would be imposed on imports from Canada and Mexico starting Saturday.
However, he remains undecided about including oil from these countries in his tariffs, stating that his decision will depend on whether the oil prices charged by his North American trade partners are fair.
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