President-elect Donald Trump has issued a stern warning to the BRICS bloc. He called on members to abandon plans to create an alternative currency to replace the US dollar in international trade.
Trump, known for his "America First" stance, stressed that any such move would face severe consequences. This includes a 100% tariff on goods from BRICS countries and the loss of access to the US market.
BRICS Faces Trump's Fierce Reaction to De-Dollarization Efforts
In a post on his Truth Social platform on November 30, Trump called for a firm commitment from BRICS countries not to develop or support a rival currency. He emphasized that the United States will not tolerate efforts to undermine the dominance of the US dollar.
"The idea that the BRICS countries are trying to get off the US dollar while we just watch is UNACCEPTABLE. We demand a commitment from these countries that they will not create a new BRICS currency, nor support any other currency to replace our great US dollar, or they will face a 100% tariff and should prepare to say goodbye to selling into our GREAT economy," he declared.
This warning is in line with Trump's campaign promise to defend the global reserve status of the US dollar. Reports indicate that his team is exploring punitive measures against countries pushing for de-dollarization strategies.
The BRICS bloc — comprising Brazil, Russia, India, China, and South Africa — has been at the forefront of discussions on de-dollarization since 2023. These discussions gained momentum at a summit, where member countries considered alternative payment mechanisms, including the use of the Chinese renminbi and blockchain-based stablecoins.
Market analysts point out that such digital currencies could circumvent US sanctions and provide a new framework for international trade.
This year, BRICS has expanded its membership for the first time in over a decade, adding Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt. With 34 other countries expressing interest in joining, the bloc hopes to strengthen its influence in the global economy. By leveraging local currencies and alternative banking networks, member countries aim to reduce their dependence on the US dollar while avoiding Western sanctions.
Observers note that these initiatives have the potential to reshape the dynamics of international trade. However, Trump's hardline stance signals the possibility of escalating economic tensions between the United States and the BRICS nations.
