The US president has warned of severe tariffs if the geopolitical bloc pursues a common currency
US President Donald Trump has declared the BRICS trade and development group “dead” and threatened to impose massive tariffs on all imports from its member nations if they proceed with plans to establish a common currency. Trump made the comment on Thursday, while addressing perceived challenges to the US dollar’s dominance in global trade.
BRICS was initially founded in 2006 by Brazil, Russia, India, and China, with South Africa joining the group in 2010. Last year, four more countries officially joined the bloc, including Egypt, Iran, Ethiopia, and the United Arab Emirates. Current members account for about 46% of the world’s population and over 36% of global GDP, according to estimates by international financial institutions.
“BRICS was put there for a bad purpose,” Trump stated. “I told them if they want to play games with the dollar, then they are going to be hit by a 100% tariff. The day they mention that they want to do it, they will come back and say – we beg you, we beg you. BRICS is dead since I mentioned that.”
The US president’s remarks were made ahead of a meeting with Indian Prime Minister Narendra Modi. Despite India’s membership in BRICS, Trump did not temper his criticism, emphasizing his commitment to protecting the US dollar’s status.
Trump dismissed concerns about BRICS nations’ potential economic leverage over the US, asserting, “They don’t have us over a barrel. We have them over a barrel. If BRICS wants to play games, those countries won’t trade with us. We won’t trade with them.”
Speculation about a BRICS single currency has persisted in recent years, however member states have denied any formal discussions on the matter. During the BRICS summit in Kazan, Russia in October, leaders committed to developing a cross-border payment system to complement the Western SWIFT network and expanding the use of local currencies in trade.
At the meeting, Russian President Vladimir Putin condemned the US government’s use of sanctions and financial restrictions, calling the dollar’s “weaponization” a “big mistake” that is driving nations to explore alternatives.
