In a recent development, newly elected President Donald Trump has warned the BRICS countries against any attempt to replace the US dollar and has sought a commitment from the nine-member group, which includes India, Russia, China and Brazil.
The president-elect has asked these countries to pledge not to create a new BRICS currency or support any other currency that could replace the dollar, or they will face 100% tariffs and lose access to the US market.
Founded in 2009, BRICS is the only major international group that does not include the United States. The other members are South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates. It is notable that in recent years a number of member states, especially Russia and China, have been looking for an alternative to the US dollar to create their own BRICS currency. However, India has not been part of this move so far.
In an X-post on Saturday, November 30, Trump warned these countries against such a move.
“We need a commitment from these countries that they will neither create a new BRICS currency nor support any other currency to replace the mighty US dollar, otherwise they will face 100% tariffs and expect to say goodbye taking sales in the beautiful USA. Economy,” the president-elect underlined.
‘No chance that BRICS will replace the USD’
He firmly announced that there is no chance that the BRICS will replace the US dollar in international trade, and further noted that any country that tries to do so must say goodbye to America.
At a recent summit, Russia’s Vladimir Putin blamed the United States of America for “weaponizing” the dollar, calling it a big mistake. Putin emphasized that Russia is not choosing to give up the dollar, but is forced to look for other options due to US restrictions.
It is striking that Trump promised during his campaign that he would make it expensive for countries to abandon the US dollar. And threatened to use tariffs to ensure compliance.
Efforts to keep USD dominance intact
Trump and his economic advisers have discussed ways to punish both allies and adversaries who seek to engage in bilateral trade in currencies other than the dollar. These measures include considering options such as export controls, currency manipulation charges and tariffs on trade.
Trump has long emphasized that he wants the US dollar to remain the world’s reserve currency. In an interview with CNBC in March, he said he would “not allow countries to move away from the dollar” because it would be “a blow to our country.”
BRICS members express their frustration
The US dollar has long been the basis of global trade and continues to dominate as the world’s most widely used currency. However, members of the BRICS alliance and developing countries have expressed frustration because they believe America has increased its control over the global financial system.
The president-elect has already intimidated global markets before his second term with threats to impose an additional 10 percent tariff on goods from China and 25 percent tariffs on all products from Mexico and Canada if these countries do not take action to stem the flow to keep control. of illegal drugs and undocumented migrants across US borders.