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Trump warns BRICS nations: 100% tariffs imposed If US dollar Is replaced in global trade

BRICS group has long been discussing ways to reduce dependence on the US dollar

Reported by:  PTC News Desk  Edited by:  Jasleen Kaur -- January 31st 2025 10:11 AM
Trump warns BRICS nations: 100% tariffs imposed If US dollar Is replaced in global trade

Trump warns BRICS nations: 100% tariffs imposed If US dollar Is replaced in global trade

PTC Web Desk: US President Donald Trump has issued a stern warning to the BRICS nations (Brazil, Russia, India, China, and South Africa), threatening 100% tariffs on their exports if they attempt to replace the US dollar as the dominant currency in international trade.

Donald Trump, known for his stance against de-dollarisation, expressed that the BRICS countries must ensure the US dollar's continued role in global trade or face severe economic consequences.


In a post on Friday, Trump stated, “The idea that the BRICS countries are trying to move away from the dollar is OVER. We will require a commitment from these countries to not create a new BRICS currency or back any other currency to replace the mighty US Dollar. Otherwise, they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy.”

Trump's statement is consistent with his previous remarks from November 30, 2024, after winning re-election. He added, "They can go find another sucker nation. There is no chance that BRICS will replace the US dollar in international trade. Any country that tries will say hello to tariffs, and goodbye to America!”

The BRICS group has long been discussing ways to reduce dependence on the US dollar, particularly following Western sanctions on Russia after its invasion of Ukraine. BRICS has expanded to include additional countries such as Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. While the group does not have a common currency, it has been promoting the use of local currencies in trade.

Despite these efforts, the US dollar remains the world's dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Centre found that neither the euro nor BRICS nations have significantly reduced global reliance on the dollar.

Trump's threats come amid his push to maintain the dollar's global dominance. This rhetoric, coupled with his historical use of tariffs as leverage, also follows his stance on Mexico and Canada, where he pushed for tariffs to address concerns such as illegal immigration and drug trafficking.

Economists have warned that Trump's tariff policies could increase costs for American businesses and consumers, especially industries dependent on imported raw materials.

- With inputs from agencies

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