After taking oath as the 47th President of the United States, Donald Trump on Monday announced that there could be a 100% tariff on BRICS nations, including India. This move could have a significant impact on trade relations between Washington and New Delhi.

While signing official orders in the Oval Office, Trump told reporters, "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," pointing to the reduced use of the dollar in global trade.

The US President clarified that his statement should not be interpreted as a threat but rather as a firm position on the issue. He also disagreed with his predecessor, Joe Biden's remarks about the US being in a vulnerable position, stating that America holds power over the BRICS nations.

Regarding de-dollarisation, Trump had previously warned the BRICS nations in December 2024, even before his swearing-in, that he would impose a 100 per cent tariff unless they committed not to creating a new currency to replace the US dollar.

Trump posted on his social media saying, "The idea that BRICS countries are trying to move away from the dollar while we just watch is over." To Trump's post respond, India’s External Affairs Minister S. Jaishankar stated that India has no interest in weakening the US dollar.

At the Doha Forum in December 2024, Jaishankar also mentioned the strong relationship India had with Trump’s first administration.The BRICS countries have been working to reduce the US dollar's control over the global financial system by creating a new global currency.

Trump and his advisors have been talking about ways to punish anyone who challenges the dollar in trade. The US President has repeatedly said he wants the US dollar to stay as the world's main currency.

In 2023, during a BRICS summit, the group discussed moving away from the dollar after the US imposed sanctions on Russia. Russian President Vladimir Putin also emphasized that BRICS countries should focus on using their national currencies for trade and work more closely together with banks.