Trump Threatens 100% Tariffs on BRIC Nations Over Dollar Challenges

President-elect Donald Trump issued a stern warning on Saturday, threatening to impose 100% tariffs on a bloc of nine nations if they attempt to undermine the dominance of the U.S. dollar in global trade. The threat targets countries in the BRIC alliance, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. Turkey, Azerbaijan, and Malaysia have applied for membership, while several other nations have shown interest in joining the group.

The U.S. dollar remains the most widely used currency for international trade and holds a commanding position in the global financial system. It accounts for approximately 58% of global foreign exchange reserves, according to the International Monetary Fund (IMF), and remains the primary currency for commodities such as oil. Despite this, the BRIC nations and other developing economies have voiced frustration over America’s financial dominance and are seeking alternatives to reduce their reliance on the dollar—a movement commonly referred to as “de-dollarization.”

Trump, addressing the issue on his Truth Social platform, stated, “We require a commitment from these 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, and should expect to say goodbye to selling into the wonderful U.S. economy.”

The growing economic influence of the BRIC alliance poses a potential challenge to the dollar’s supremacy. The group’s share of global GDP has steadily increased, and its members have expressed intentions to conduct trade using non-dollar currencies. At an October summit of BRIC nations, Russian President Vladimir Putin criticized the United States for “weaponizing” the dollar, calling it a “big mistake.”

“It’s not us who refuse to use the dollar,” Putin remarked during the summit. “But if they don’t let us work, what can we do? We are forced to search for alternatives.”

Russia has been a vocal advocate for developing a new payment system independent of the global bank messaging network SWIFT. Such a system would allow Moscow to bypass Western sanctions and facilitate trade with its partners. This push for an alternative payment infrastructure aligns with the broader efforts of BRIC nations to reduce their dependency on the U.S. dollar.

Despite these efforts, Trump dismissed the possibility of the dollar losing its preeminence in global trade. “There is no chance BRIC will replace the U.S. dollar in global trade,” he declared. “Any country that tries to make that happen should wave goodbye to America.”

Economic experts and research findings suggest that the dollar’s position as the world’s primary reserve currency remains stable for the foreseeable future. A model developed by the Atlantic Council assessing the dollar’s role in the global economy concluded that its status is “secure in the near and medium term” and continues to overshadow other currencies.

Trump’s recent tariff threat against the BRIC nations echoes his earlier rhetoric on trade policies. During his campaign, he threatened a 25% tariff on all goods imported from Mexico and Canada and proposed an additional 10% tax on imports from China. These measures were framed as strategies to curb illegal immigration and drug trafficking into the United States.

In response to these threats, Mexican President Claudia Sheinbaum expressed optimism that a tariff conflict with the U.S. could be avoided following a recent call with Trump. Meanwhile, Canadian Prime Minister Justin Trudeau met with the president-elect in an effort to resolve trade tensions. Trudeau returned to Canada on Saturday without securing guarantees that the proposed tariffs on Canadian goods would be withdrawn.

As Trump prepares to take office, his approach to trade and global financial policies has drawn both criticism and support. His latest warning to the BRIC alliance underscores his commitment to defending the dollar’s dominance and ensuring that America’s economic interests remain secure. However, the growing influence of the BRIC nations and their push for de-dollarization may signal an evolving challenge to the established global financial order.