US President Donald Trump recently issued a strong warning to the Brics nations, a group of emerging economies that includes countries like Brazil, Russia, India, China, and South Africa. Trump made it clear that if these countries attempt to replace the US dollar with their own currency for global trade, they could face severe consequences.
In a post shared on his social media platform, Truth Social, Trump expressed his strong opposition to the idea of de-dollarisation. He said, “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER.” This statement made it clear that Trump is not willing to let other countries move away from the US dollar without facing serious consequences.
Trump went on to threaten that any country trying to create an alternative currency to replace the US dollar would face 100% tariffs. He said, “We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency nor back any other currency to replace the mighty US dollar, or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy.”
Brics Nations Looking for Alternatives
The Brics countries have been talking about the idea of using a currency other than the US dollar for trade. This idea is known as “de-dollarisation.” The aim is to reduce the world’s reliance on the US dollar for international transactions.
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Brics is a group of countries that includes Brazil, Russia, India, China, South Africa, and some other nations like Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. These countries have been discussing ways to use their own currencies instead of the US dollar in trade deals among themselves. The goal of this move is to reduce their dependence on the US dollar, which currently plays a huge role in global trade.
Trump’s comments come as the Brics countries continue to explore alternatives to the US dollar. Russian President Vladimir Putin, for example, has spoken about the importance of moving away from the dollar, calling for more use of local currencies between Brics nations. He believes this could reduce the influence the US has over the global economy.
Efforts to Move Away from the Dollar
At the 15th Brics Summit in 2023, Putin mentioned the need for Brics countries to expand the use of their national currencies in international trade. The foreign ministers of Brics countries also agreed in a 2024 meeting to promote more use of local currencies in trade among the group. This effort is aimed at reducing the dominance of the US dollar and finding a more balanced way of conducting trade and financial transactions.
Trump’s warning comes as Brics nations continue to push for de-dollarisation. As countries like Russia, India, and China look to increase trade among themselves using their national currencies, the US is watching closely. These countries want to reduce their reliance on the US dollar and limit the financial influence the US holds over their economies. But Trump is clear: any attempt to replace the dollar will not be tolerated.
Trump’s Repeated Warnings About De-dollarisation
Trump’s recent warning about Brics nations attempting to replace the US dollar is not the first time he has voiced his concern. He has previously made similar statements, including a warning in December of the previous year. He has been very vocal about his opposition to any moves that could undermine the power of the US dollar in the global economy.
In his recent comments, Trump told Brics countries that if they proceed with creating an alternative currency, they would face serious consequences. He warned them, saying, “They can go find another sucker nation. There is no chance that Brics will replace the US dollar in international trade or anywhere else, and any country that tries should say hello to tariffs and goodbye to America!”
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The US Dollar’s Dominance in Global Trade
The US dollar has long been the most widely used currency in global trade, with over 90% of international transactions conducted using it. Although other currencies, like the Japanese yen, the euro, and the British pound, also have significant roles in global trade, the US dollar remains the most dominant.
Trump’s warning comes after similar remarks he made earlier in the month, where he mentioned that countries attempting to move away from the dollar would face harsh economic consequences. He said, “If they do that, they are not going to be happy about what’s going to happen to them.” His message is clear: any nation trying to replace the US dollar should expect to face severe economic retaliation from the US.
As tensions rise over the possibility of de-dollarisation, Trump’s message underscores the importance the US places on maintaining the global dominance of its currency. With Brics countries pushing for alternatives to the dollar, the ongoing debate around de-dollarisation continues to grow. However, for now, Trump has made it clear that any attempt to replace the US dollar will be met with forceful economic action.
