United States President-elect Donald Trump has vowed to impose 100% tariffs on BRICS nations that pursue efforts to replace the U.S. dollar in international trade. The declaration, shared on his official Facebook page on Sunday, reflects Trump’s strong stance against any perceived threats to U.S. economic dominance.
Renowned for his “America First” policy, Trump emphasized that the U.S. would not stand idly by while BRICS countries—Brazil, Russia, India, China, and South Africa—attempt to challenge the dollar’s central role in global trade.
“Ignoring the U.S. Dollar is Over”
In his statement, Trump criticized BRICS’ de-dollarization agenda and issued a stern warning to countries contemplating such moves.
“We require a commitment from these countries that they will neither create a new BRICS currency nor support any other currency to replace the mighty U.S. dollar,” Trump stated. “If they do not comply, they will face 100% tariffs and should expect to say goodbye to selling into the wonderful U.S. economy. They can go find another ‘sucker!’”
He added, “There is no chance that BRICS will replace the U.S. dollar in international trade, and any country that tries should wave goodbye to America.”
Context and Background
BRICS, established in 2009, aims to challenge U.S. global dominance, particularly in economic and financial systems. As of 2023, Russia’s Foreign Minister Sergey Lavrov had called for reducing the dollar’s use in international transactions, describing it as a means to counter U.S. “hegemony.”
• In the first quarter of 2023, the U.S. dollar led global foreign exchange reserves by currency.
• By 2024, the BRICS bloc expanded to include six additional nations: Iran, Saudi Arabia, the UAE, Egypt, Argentina, and Ethiopia. These nations have actively pursued efforts to de-dollarize their economies.
Nigeria Joins BRICS
Nigeria recently became a BRICS partner country, joining 12 other nations. The announcement was made during the BRICS summit held in Kazan, Russia, from October 22 to 24, 2024.
• Nigeria’s inclusion follows a 189% surge in foreign capital inflows from BRICS nations, rising from $438.72 million in the first half of 2023 to $1.27 billion in 2024.
Trump’s statement signals potential shifts in U.S. foreign policy, with stricter economic relations anticipated between the U.S. and nations aligning with BRICS’ de-dollarization agenda.
Implications
Trump’s proposed tariffs and potential bilateral sanctions reflect his broader strategy to protect the U.S. dollar’s global dominance. If enacted, these measures could escalate tensions with key international partners, complicating trade relations and potentially reshaping the global economic landscape.
