Trump threatens 100% tariffs on BRICS nations over potential dollar alternatives

U.S. President-elect Donald Trump escalated tensions with the BRICS coalition on Monday, warning of severe economic retaliation if the bloc advances plans to challenge the U.S. dollar’s global hegemony.

In a post on his Truth Social platform, Trump demanded a pledge from the group—which includes Brazil, Russia, India, China, South Africa, and an expanded roster of nations—to abandon any moves toward creating a joint BRICS currency or promoting alternatives to the dollar.

“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,” Trump stated, doubling down on his protectionist economic stance.

The warning follows the October BRICS summit in Kazan, Russia, where members explored reducing reliance on the dollar in global trade and enhancing local currency systems. Moscow led efforts to deepen the bloc’s financial networks, securing an agreement to bolster correspondent banking within BRICS and promote the BRICS Cross-Border Payments Initiative.

Despite these ambitions, Russian President Vladimir Putin admitted limited progress on key initiatives, including an alternative to the SWIFT financial messaging system.

“As for SWIFT and any alternatives, we have not created and are not creating any alternatives,” Putin said at the summit’s conclusion. On the idea of a unified BRICS currency, he added, “We are not considering that question at the moment.”

Trump, however, appears unconvinced. His threat underscores growing unease in Washington about the coalition’s push for financial independence.

“They can go find another ‘sucker!’” Trump wrote, accusing BRICS nations of plotting to undermine U.S. economic strength. “There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America.”

The BRICS bloc, which began as an economic partnership in 2009, has grown to include nations such as Iran, Egypt, and the UAE, collectively representing a significant share of global output. However, the challenge of uniting diverse economies has often slowed progress toward ambitious goals, leaving Trump’s sweeping tariffs a potential spark in an already volatile dynamic.

Trump’s latest statements indicate that his administration could prioritize a confrontational trade agenda, signaling high stakes for global economic relations in the years ahead.