In a bold and unmistakable warning, President Donald Trump has once again drawn a hard line against the growing ambitions of BRICS nations to challenge the dominance of the U.S. dollar in global trade. Taking to Truth Social, Trump issued a stark ultimatum: any country attempting to establish or support an alternative reserve currency would face severe economic consequences, including 100% tariffs. This latest declaration echoes a similar statement he made shortly after his November election victory, reinforcing his administration’s firm stance on defending the primacy of the American dollar.
The BRICS coalition—comprising Brazil, Russia, India, China, South Africa, and a handful of recently added nations—has long explored ways to reduce dependency on the U.S. financial system. Since Western sanctions isolated Russia from global banking networks, momentum has grown within the bloc to establish new financial mechanisms that bypass the dollar.
While no unified BRICS currency yet exists, discussions surrounding alternative trade settlements and de-dollarization strategies have gained traction, particularly among nations wary of Washington’s influence over international finance.
Trump’s warning, however, leaves little room for doubt. "There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else," he declared. "And any Country that tries should say hello to Tariffs, and goodbye to America!" His message underscores a willingness to wield economic pressure to preserve the dollar’s supremacy—an approach that has defined his economic strategy both at home and abroad.
This comes at a time when Trump is also weighing significant tariffs against Canada and Mexico, potentially imposing a 25% levy on trade with the United States’ closest neighbors. The move is aimed at forcing greater cooperation in halting the flow of illegal migrants and deadly narcotics, particularly fentanyl, into the U.S. By leveraging tariffs as a policy tool, Trump seeks to exert maximum influence over international economic decisions—whether in North America or among BRICS nations plotting a financial shift.
Despite the growing rhetoric around de-dollarization, recent analyses indicate that the U.S. dollar remains firmly entrenched as the world’s dominant reserve currency. A report from the Atlantic Council’s GeoEconomics Center highlights that neither the euro nor BRICS-affiliated currencies have successfully chipped away at the greenback’s global standing.
While economic fragmentation has accelerated conversations about diversification, the reality remains that the U.S. economy, strong monetary policy, and geopolitical uncertainty continue to reinforce the dollar’s influence.
The origins of the BRICS coalition trace back to 2001 when economist Jim O’Neill of Goldman Sachs identified Brazil, Russia, India, and China as emerging economic powerhouses. Initially an informal economic alliance, the bloc was formally established in 2009, adding South Africa the following year.
In 2023, expansion efforts accelerated, bringing in Egypt, Ethiopia, Iran, and the UAE, with Indonesia joining in 2024. While the group presents itself as a counterweight to Western-led financial institutions, its ability to unify under a single monetary framework remains an open question.