President Donald Trump warned BRICS member countries against replacing the U.S. dollar as the global reserve currency, reiterating his threat of imposing 100% tariffs after his victory in the November elections.

Trump, in a post on his social media platform TruthSocial, stated, "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."

In December 2024, Russia stated that any effort to force BRICS countries to use the U.S. dollar would only increase the demand for national currencies. A 2024 study by the Atlantic Council's GeoEconomics Center highlighted the continued global reliance on the U.S. dollar as the primary reserve currency, noting that both the euro and attempts to establish alternate currencies had failed to challenge the dollar's dominance.

BRICS comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates. Although the group does not have a shared currency, talks about establishing one have accelerated following Western sanctions imposed on Russia due to the war in Ukraine.

Reuters reported that the global movement against the dominance of the U.S. dollar has been strengthened by the robust performance of the U.S. economy, changes in taxation and monetary policies, and escalating geopolitical tensions.

Tariffs

Donald Trump has announced plans to impose a 25% tariff on Canada and Mexico starting February 1, aiming to address illegal immigration and the flow of opioids such as fentanyl. He also warned China of a 10% tariff on imports, citing its role as a fentanyl supplier detrimental to the United States.