Trump Threatens 100% Tariffs on BRICS Nations, Targets India, China, and Russia Over Dollar Alternatives

The world could face a new wave of tariff wars as U.S. President-elect Donald Trump prepares to take office in January 2025. Trump has issued a strong warning to the BRICS countries—Brazil, Russia, India, China, South Africa, and their newer members, Egypt, Iran, and the UAE—threatening 100% tariffs if they attempt to undercut the U.S. dollar or replace it with another currency for international transactions.

The statement comes after an October BRICS summit in Kazan, Russia, where the bloc discussed reducing reliance on the U.S. dollar and boosting local currency transactions.

In an online post, Trump made his stance clear:

"The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. 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. Otherwise, they will face 100% Tariffs and should expect to say goodbye to selling into the wonderful U.S. Economy," he stated.

Trump also mocked the BRICS nations, suggesting they would fail in any attempt to replace the dollar.

"They can go find another 'sucker!' There is no chance that the BRICS will replace the U.S. Dollar in international trade. Any country that tries should wave goodbye to America," he warned.

BRICS and the Push for Non-Dollar Trade

The BRICS bloc has been exploring ways to strengthen financial cooperation and reduce dependency on the U.S. dollar. At the October summit, the group agreed to enhance correspondent banking networks and enable settlements in local currencies under the BRICS Cross-Border Payments Initiative.

However, Russian President Vladimir Putin admitted that no alternative to the SWIFT financial messaging system had been established yet.

India has also distanced itself from the idea of “de-dollarisation.” Foreign Minister S. Jaishankar clarified in October that replacing the dollar is not part of India’s economic, political, or strategic policies. He acknowledged, however, that India explores alternative arrangements when dollar-based trade is not possible or when issues arise with trade partners.

This is not the first time Trump has taken issue with trade policies of BRICS nations, including India, Brazil, and China. During his campaign, Trump emphasized the importance of "reciprocity" in trade, arguing that the U.S. has been overly lenient with tariffs compared to other countries.

"Reciprocity is a word that's very important in my plan because we generally don't charge tariffs. China charges us a 200% tariff. Brazil is a big charger," Trump said in October.

He singled out India, calling it the "biggest charger of all," while acknowledging the country’s strong relationship with the U.S. and his admiration for Prime Minister Narendra Modi.

"India probably charges more, in many ways, than China. But they do it with a smile. They say, 'Thank you so much for purchasing from India,'" he quipped during a speech at the Detroit Economic Club.

Trump’s threats raise concerns about potential trade tensions between the U.S. and BRICS nations, especially if the bloc continues exploring alternatives to the dollar. His focus on tariffs as a tool for economic leverage signals a tough stance on global trade, with possible implications for U.S. economic relationships worldwide.

Observers will be closely watching how BRICS nations respond to Trump’s remarks and whether the new administration’s policies lead to escalated trade conflicts.