US President Donald Trump fired another warning shot at the BRICS bloc, of which India is a part, threatening to impose 100 per cent tariffs if they attempt to replace the US dollar with an alternative currency.
“The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER,” Trump wrote in a post on his social media platform, Truth Social, on Friday.
“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,” he said in his signature bellicose style.
BRICS, an intergovernmental organisation comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, has been discussing alternatives to the US dollar for international trade.
“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!” Trump added.
The US President’s warning follows similar remarks he made after assuming office earlier this month, when he cautioned BRICS against taking a decision that could lead to ‘de-dollarisation’ of the global economy.
“They (BRICS) tried to do a number on the United States, and if they do that, they are not going to be happy about what’s going to happen to them,” he had told reporters in the Oval Office.
Prior to that, in December, he threatened the group with punitive tariffs if they moved forward with any plans to ditch the US dollar.
In response to Trump’s threats, External Affairs Minister S Jaishankar had made it clear that India never supported the idea of moving away from the US dollar, but sought “workarounds” in pursuit of its trade interests. He also clarified that there were no current proposals for a BRICS currency.
While the US dollar dominates global trade, accounting for more than 90 per cent of transactions, other convertible currencies like the Japanese yen, euro, and British pound also play key roles. The US has not opposed their use.
In a similar fashion, a BRICS currency would serve as an alternative to facilitate trade among member nations and reduce reliance on a single currency.
