On November 30, President-elect Donald Trump warned that a 100% tariff would be imposed on nine BRICS nations if they attempt to create or support a currency rivaling the U.S. dollar. The countries involved — Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE — have sought alternatives to the dollar for international trade. Trump’s statement, made on Truth Social, emphasized that these nations must commit to not creating a new currency or endorsing any rival currency, or face tariffs that would block their goods from entering the U.S.
The BRICS group, formed in 2009, has long sought to reduce reliance on the U.S. dollar, which grants the U.S. significant geopolitical and economic advantages. Russian President Putin and Brazilian President Lula have voiced support for alternatives, including a new international payment system and a common South American currency.
Creating a competing currency would face significant challenges due to the dominance of the dollar in global trade. Despite this, some BRICS countries continue to push for alternatives. However, experts argue that the idea of a BRICS currency is unlikely to replace the dollar in the near future, given the strength and stability of the U.S. economy. South Africa recently downplayed reports of a new BRICS currency, stating that the group focuses on trading with national currencies.
If Trump’s tariffs were enacted, U.S. consumers would likely face higher prices on products from BRICS countries, such as coffee, electronics, and minerals. Economists warn that such actions could harm U.S. consumers and weaken the dollar’s global position. Critics argue that the threat to impose tariffs may inadvertently accelerate the push to move away from the dollar in international trade, weakening its role as the world’s primary reserve currency
