The BRICS bloc, which includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE, has been advocating for alternatives to the dollar, aiming to reduce reliance on Western-dominated financial systems.
At a recent BRICS summit, Russian President Vladimir Putin criticized the US for “weaponizing” the dollar, calling it a strategic error. The bloc has since intensified efforts to develop a new currency framework, raising concerns in Washington.
In response, Trump, via a post on X (formerly Twitter) on Sunday, demanded a formal commitment from BRICS nations to halt their de-dollarization plans.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is over,” Trump wrote. “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 or, they will face 100 per cent tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy.”
Trump emphasized the importance of the dollar’s dominance, stating, “There is no chance that the BRICS will replace the U.S. Dollar in international trade, and any country that tries should wave goodbye to America.”
The US dollar currently accounts for approximately 58 per cent of the world’s foreign exchange reserves, according to the International Monetary Fund (IMF). It remains the primary currency for major commodities like oil.
Trump’s remarks signal a potentially tense economic standoff between the US and the BRICS bloc, as both sides prepare to assert their influence on the global financial stage.
