Trump Threatens BRICS Nations Over Plans to Create Alternative to US Dollar

In a recent statement, US President Donald Trump warned the BRICS nations (Brazil, Russia, India, China, and South Africa) of severe consequences if they proceed with their plans to create an alternative to the US dollar. Trump threatened to impose massive tariffs on these countries unless they abandon their plans to create a new currency for the BRICS group or support any other currency that could replace the US dollar.

The Threat

Trump took to his social media platform, Truth Social, on Saturday to issue the warning: "We demand that these countries commit to not creating a new currency for the BRICS group or supporting any other currency that could replace the strong US dollar, or else they will face 100% tariffs." He further added that, apart from imposing tariffs, trade with America will also be limited for these countries if they continue to abandon the US dollar as their reserve currency.

The BRICS Currency Debate

Discussions about creating a single payment instrument for BRICS members have been ongoing for several years. Some proposals suggest that such a currency could be backed not only by gold but also by other commodity groups, particularly rare earth metals and land.

Russia's Stance

Russian President Vladimir Putin, speaking at the Valdai International Discussion Club meeting in early November, stated that it is premature to talk about creating a unified currency for BRICS, and there is no such goal. He noted that two-thirds of Russia's trade is already conducted in national currencies, and this proportion is already 88% in BRICS countries.

What is BRICS?

BRICS is a loose association of five major emerging national economies, founded in 2006 by Russia, China, India, South Africa, and Brazil. Moscow has taken over the presidency of the organization since January 1, 2024.

Expansion of BRICS

Since the beginning of 2024, Egypt, Ethiopia, Iran, the United Arab Emirates, and Saudi Arabia have joined BRICS, bringing the total number of member countries to 10. Russia's presidency of the association is under the slogan of strengthening multipolarity for equitable global development and security.

Table: BRICS Member Countries

List: Potential Consequences of Trump's Threat

1. Imposition of massive tariffs on BRICS countries
2. Limitation of trade with America for BRICS countries
3. Potential destabilization of global trade and economy
4. Strengthening of alternative currencies and trade blocs
5. Escalation of tensions between the US and BRICS countries