On Friday, U.S. President Donald Trump reaffirmed his intention to impose 100% import tariffs on BRICS nations (Brazil, Russia, India, China, and South Africa) if they take steps to reduce reliance on the U.S. dollar in global trade.

In a statement shared on Truth Social, Trump made it clear that the United States would not tolerate any BRICS initiative to develop an alternative currency. He demanded a firm commitment from BRICS nations to halt any efforts toward creating or supporting a competing currency, warning that failure to comply would lead to severe consequences, including steep tariffs and restricted access to the U.S. market.

‘No Chance’ for BRICS to Replace the Dollar

Trump dismissed the idea that BRICS could challenge the global dominance of the U.S. dollar, calling it “mighty” and irreplaceable in international trade. He declared, “There is no chance that BRICS will replace the U.S. Dollar in international trade or anywhere else.”

His post carried a clear ultimatum: “Any country that tries should say hello to tariffs and goodbye to America!”—a reflection of his long-standing strategy of using aggressive trade policies to protect U.S. economic interests.

The BRICS bloc, composed of some of the world’s largest emerging economies, has previously expressed interest in reducing dependency on the dollar in international transactions. Speculation has grown that the group might develop a shared currency or expand the use of national currencies in bilateral trade, a move that could weaken the dollar’s role as the world’s primary reserve currency.

Tariff Threat Signals a Return to Trump’s Trade Tactics

Trump’s renewed tariff threats mark a continuation of his signature trade policy. During his first term, he imposed tariffs on a wide range of goods to address trade deficits and boost U.S. manufacturing.

He reiterated that any country attempting to move away from the dollar would face similar repercussions. “They will face 100% tariffs and should expect to say goodbye to selling into the wonderful U.S. economy,” he wrote.

Many BRICS nations, especially China, have significant trade relationships with the United States. In 2022, the U.S. imported $536.8 billion worth of goods from China, making it one of the largest trading partnerships in the world. The imposition of steep tariffs could significantly disrupt these economic ties.

India’s Position Amid the Dispute

India has recently been working to reduce its dependence on the U.S. dollar while promoting the internationalization of the Indian rupee. In 2022, the Reserve Bank of India (RBI) approved invoicing and payments for international trade in rupees, particularly following sanctions on Russia due to the Ukraine conflict.

Speaking in Kazan, Prime Minister Narendra Modi expressed support for strengthening financial cooperation within BRICS, stating that “trade in local currencies and smooth cross-border payments will enhance our economic collaboration.”