By Currency Clash: U.S. Dollar vs BRICS Ambitions
On Thursday, Donald Trump issued a stern warning to BRICS nations, threatening to impose 100% tariffs if they pursue the creation of a new currency to rival the U.S. dollar. The former president called on the bloc, which includes Brazil, Russia, India, China, and South Africa, to abandon any plans for a competing currency or face significant economic repercussions.
“There is no substitute for the U.S. dollar in international trade,” Trump declared on his social media platform, Truth Social. “Any effort to challenge it will lead to tariffs and exclusion from the U.S. market.”
Although the BRICS alliance has frequently discussed the idea of a unified currency, no tangible progress has been made. While some view the proposal as speculative, U.S. policymakers continue to monitor the situation closely.
Trump’s warning aligns with his broader strategy of leveraging tariffs to shape global economic dynamics. His latest move also comes as he readies additional trade penalties on exports from Canada and Mexico, underscoring his preference for aggressive trade policies to safeguard U.S. interests.