US President-elect Donald Trump has promised a 100% tariff on BRICS nations if they attempt to replace the US dollar, urging this nine-member group, which includes India, Russia, China, and Brazil, to commit against such actions. Established in 2009, BRICS is notable as the only significant international group that does not include the United States.
In recent years, some members, particularly Russia and China, have been exploring alternatives to the US dollar or the creation of a new currency for BRICS. However, India has not joined these efforts. In a post on Truth Social, a platform he owns, Trump cautioned BRICS countries against any move toward de-dollarization. He stated, “The notion that BRICS is moving away from the dollar while we stand idle is OVER,” and demanded their commitment to not create a new BRICS currency or support any other currency to replace the US dollar, threatening that failure to comply would result in 100% tariffs and losing access to the US market.
Trump asserted that BRICS would not be able to replace the US dollar in international trade, urging any country contemplating this move to “say goodbye to America.” During the 2023 summit, BRICS countries agreed to investigate the possibility of a shared currency, an initiative suggested by Brazilian President Luiz Inácio Lula da Silva. However, India has expressed its opposition to de-dollarization. India’s External Affairs Minister S. Jaishankar addressed the topic at the Carnegie Endowment for International Peace, explaining India’s position on the US dollar. He stated that India does not harbor any “malicious intent” towards the dollar and does not target it through its economic policies.
However, he acknowledged challenges that arise when trading partners lack access to dollars, which pushes India to look into alternative methods for settlements. He also pointed out that US policies can complicate trade based on the dollar, leading to the need for “workarounds” to keep business running. He highlighted the shifting global economic landscape and remarked, “We spoke about rebalancing… obviously, all of this will impact currencies and economic needs,” reflecting India’s practical approach.
