US President Donald Trump reiterated his threat towards the BRICS nations on Monday (local time), stating that countries that are part of this organization would face 100 per cent tariffs on trade with the US if they continue their de-dollarization efforts.
Speaking to the media during his signing ceremony at the Oval Office, President Trump said, “As a BRICS nation… they’ll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they ‘ll give it up immediately,” referring to the reduction in the use of the dollar in global trade.
Trump added that his statement should not be seen as a threat but rather as a clear stance on the issue.
The President also referenced comments made by former US President Joe Biden, suggesting that Biden had indicated the US was in a vulnerable position on this matter, to which Trump disagreed, asserting that the US has the leverage over the BRICS nations and that they would not be able to proceed with their plans.
“If the BRICS nations want to do that, that’s OK, but we’re going to put at least a 100 per cent tariff on the business they do with the United States… It’s not even a threat. In fact, since I made that statement, they have us over a barrel. And there’s no way they’re going to be able to do that.
Trump, earlier before being sworn as the 47th President of the US, had threatened BRICS countries over the imposition of 100 per cent tariffs on all imports from those countries, should they dare to launch their currency.
BRICS nations were already working on reducing dollar dominance in the global financial system by replacing it with a new global currency.
During the plenary session of the 15th BRICS Summit via videoconferencing in 2023, Russian President Vladimir Putin called for de-dollarization, stressing that BRICS countries must expand settlements in national currencies and enhance cooperation between banks.
In June 2024, Ministers of Foreign Affairs of the BRICS countries met in Russia’s Nizhny Novgorod and called for enhanced use of local currencies in bilateral and multilateral trades and financial transactions between the member countries.