The US president has reiterated his pledge to cut trade with members of the economic bloc if they try “to destroy” the dollar
US President Donald Trump has claimed that his threat to place tariffs on BRICS “broke up” the economic bloc. Trump made the comment at a Republican Governors Association meeting on Thursday, accusing BRICS of “trying to destroy our dollar.” He reiterated his vow to cut trade with members of the group if they proceed with plans to establish a common currency.
Trump has made a number of threats regarding BRICS since being reelected in November last year. He previously stated that the bloc’s efforts to reduce reliance on third-party currencies in bilateral trade and boost the use of national currencies has challenged the dominance of the US dollar.
“When I came in, the first thing I said is, any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff… And the BRICS states just broke up… We haven’t heard from the BRICS states lately,” Trump said in a recent statement. He claimed the administration of his predecessor, Joe Biden, also perceived the bloc as a threat, but failed to act to stop it. He bragged, however, that one threat from him turned the tide.
“They said, sir, what about the BRICS states? They’re going to take over the dollar, the sanctity of the dollar. They’re going to create a new currency to rule the world. I said, no, they’re not… Tell them 150% tariff. Plus, we’re not going to do business with them” Trump said, upping the ante on his tariff threat, which was previously at 100%.
BRICS, which currently has ten members and accounts for around 36% of global GDP, has ramped up efforts to reduce reliance on Western currencies in bilateral trade in recent years, especially after the West targeted Russia with sanctions following the escalation of the Ukraine conflict in 2022, effectively cutting the country off from the Western financial system.
While there has been speculation about a BRICS single currency in recent years, most member states have denied discussing it. BRICS members have, however, boosted the use of their national currencies to protect their interests and make trade between partners easier. BRICS states, including Russia, have said the US is weakening the dollar itself by politicizing it with sanctions.
BRICS member states are currently meeting in South Africa at the G20 foreign ministers gathering scheduled for February 20-21. Ahead of the event, Russian Foreign Minister Sergey Lavrov said the G20 unites “like-minded BRICS countries and other countries of the Global South and East” and should be used to teach “Western colleagues to work productively together, rather than to impose their unilateral approaches.”
The US is skipping the meeting, with Secretary of State Marco Rubio claiming South Africa is “doing very bad things” by promoting solidarity, equality, and sustainability in the G20.
