US President-elect Donald Trump has warned the BRICS nations—Brazil, Russia, India, China, and South Africa—that they must commit to not creating or backing a new currency to replace the US dollar, or face 100% tariffs on their goods. In a statement on his Truth Social platform, Trump reiterated his stance that any move away from the US dollar would be met with severe economic consequences, including the possibility of export controls and currency manipulation charges.
Trump’s comments come as he prepares to take office in January 2025, following campaign promises to impose tariffs on nations shifting away from the dollar in global trade. The president-elect’s concerns follow growing discussions of de-dollarization, particularly after the BRICS nations explored alternatives to the dollar during a 2023 summit, motivated in part by backlash against US-led sanctions on Russia.
Trump has long advocated for the US dollar to remain the world’s reserve currency and has proposed punishing countries that attempt to trade in other currencies. His economic advisers are currently exploring potential penalties for countries pursuing de-dollarization, including key US allies. Trump’s threats have already raised concerns in global markets, especially regarding potential tariffs on trade with China, Mexico, and Canada.
Canadian Prime Minister Justin Trudeau recently met with Trump to address trade and border tensions after the tariff threats.
