President-elect Donald Trump issued a stark warning on Saturday, threatening to impose 100% tariffs on the nine-member BRICS bloc if they attempt to undermine the dominance of the U.S. dollar.
The BRICS alliance—comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE—has been increasingly vocal about reducing reliance on the dollar in global trade, a process known as “de-dollarization.”
The group’s growing share of global GDP and ambitions to trade in non-dollar currencies are seen as potential threats to the dollar’s supremacy, which currently accounts for about 58% of global foreign exchange reserves according to the IMF.
Trump, in a post on Truth Social, declared:
“We require a commitment from these Countries that they will neither create a new BRICS Currency nor back any other Currency to replace the mighty U.S. Dollar. Otherwise, they will face 100% Tariffs and can say goodbye to selling into the wonderful U.S. Economy.”
The warning follows remarks from Russian President Vladimir Putin during an October BRICS summit, where he accused the U.S. of “weaponizing” the dollar and expressed support for alternative financial systems to counter Western sanctions and reduce reliance on the U.S.-led global banking infrastructure.
While Trump insisted there is “no chance” the dollar will lose its position as the primary global reserve currency, his administration’s aggressive stance aligns with prior threats of tariffs on Mexico, Canada, and China to achieve U.S. policy goals.
Despite the rhetoric, research from the Atlantic Council suggests the dollar’s dominance remains “secure in the near and medium term.”
