President Donald Trump has once again threatened BRICS nations with massive tariffs if they attempt to replace the U.S. dollar.
BRICS is an intergovernmental bloc of nations that initially consisted of five major emerging economies: Brazil, Russia, India, China, and South Africa. As of January 1, 2024, five more countries—Iran, Egypt, Ethiopia, United Arab Emirates, and Saudi Arabia—have joined the coalition.
The latest threat mirrors a similar statement by then-President-elect Trump late last year. Both times, Trump said he would apply a 100% tariff on BRICS nations if they continue moving toward reducing reliance on the greenback.
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile 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 President wrote on TruthSocial on January 30, 2025.
“They can go find another ‘sucker!’ There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!” Trump previously stated on X on November 30, 2024.
On Friday, the Kremlin dismissed President Trump’s concerns, saying the group of nations has no plan to develop a separate currency. Kremlin spokesperson Dmitry Peskov said the BRICS nations are not interested in a collective currency but instead developing joint investment platforms.
“This is not the first time Trump has made such statements, it’s not new. There have been statements like this before, back when he was just president-elect. So now, in fact, he has repeated his old thesis,” Peskov told reporters, per Reuters.
“The point is that BRICS is not talking about creating a common currency, nor has it ever done so. BRICS is talking about creating new joint investment platforms that would allow joint investments in third countries, mutual investments, and so on,” he said.
“In all likelihood, U.S. experts probably need to explain the BRICS agenda in more detail to Mr Trump,” Peskov added.
The news of a potential BRICS tariff comes in the immediate wake of Trump again promising to impose new tariffs on the U.S.’ neighboring nations of Mexico and Canada, beginning February 1. While the President said he would follow through with applying a 25% tax on goods crossing into the U.S., he said he has yet to decide whether oil, a significant import, will be excluded.