“Donald Trump warns BRICS nations, including India, against creating a new global reserve currency, reiterating tariffs as a countermeasure.”
January 31, 2025: Former U.S. President Donald Trump issued a stern warning to BRICS member nations, cautioning them against any attempt to replace the U.S. dollar as the global reserve currency. Trump threatened a 100% tariff on countries pursuing such initiatives, reiterating his stance from his post-election declarations in November.
Posting on TruthSocial, Trump stated, “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 U.S. Dollar, or they will face 100% tariffs.”
In a December 2024 statement, Russia responded that any attempts to force BRICS nations to rely solely on the U.S. dollar would only accelerate the adoption of national currencies within the bloc. The Atlantic Council’s GeoEconomics Center found in 2024 that despite alternative currency discussions, the U.S. dollar continues to dominate as the primary global reserve currency.
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BRICS, which initially comprised Brazil, Russia, India, China, and South Africa, has expanded to include nations like Egypt, Ethiopia, Iran, Indonesia, and the UAE. While discussions on a common BRICS currency have gained traction following Western sanctions on Russia over the Ukraine war, the group currently lacks a unified monetary framework.
Global Challenges to Dollar Dominance:
The push to reduce dependence on the U.S. dollar has been fueled by geopolitical tensions, changing U.S. taxation and monetary policies, and a strong U.S. economy. Reuters reported that these factors have led to heightened interest in exploring alternatives to the dollar for global trade and reserves.
Tariff Threats:
Trump also reiterated his tough stance on trade and immigration. He pledged a 25% tariff on Canada and Mexico, citing the need to curb illegal immigration and the flow of opioids like fentanyl into the United States. Additionally, he warned China of a 10% tariff on imports, accusing it of being a key fentanyl supplier harmful to American interests.
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Donald Trump BRICS, US Dollar Reserve Currency, Global Trade Tariffs, BRICS Common Currency, Trump Economic Policies, Dollar Dominance, US-China Trade Tensions, BRICS Currency Discussions, Russia-Ukraine Sanctions, US Trade Policies