Trump Threatens 100% Tariffs Over De-Dollarization

Trump Threatens 100% Tariffs Over De-Dollarization

U.S. President Donald Trump has issued a strong warning to BRICS nations, threatening to impose 100% tariffs on their exports if they attempt to replace the U.S. dollar with a new currency or support alternatives.

Trump, who has long embraced protectionist trade policies, said the dollar has been “under major siege” for eight years | Photo: Bloomberg

Trump Threatens 100% Tariffs Over De-Dollarization

This ultimatum was communicated through a post on his social media platform, Truth Social, on January 31, 2025.

Trump characterized the BRICS countries Brazil, Russia, India, China, South Africa, and newer members like Egypt and the UAE as “seemingly hostile” and stated that the U.S. would no longer tolerate any moves away from the dollar’s dominance in international trade.

In his post, Trump emphasized that the idea of BRICS nations moving away from the dollar is “OVER.” He demanded that these countries commit to not creating a new currency or backing any alternative to the U.S. dollar.

He warned that failure to comply would result in severe economic consequences, including losing access to the U.S. market: “They can go find another sucker nation,” he stated, asserting that there is “no chance” BRICS could replace the U.S. dollar in global trade.

This warning comes amid ongoing discussions among BRICS nations about reducing reliance on the U.S. dollar, especially after Western sanctions on Russia following its invasion of Ukraine.

While some member states have shown interest in exploring alternatives, Trump’s rhetoric indicates a firm stance against any such initiatives.

Trump’s comments are reflective of his broader economic policy approach, which has consistently favored protecting U.S. economic interests through aggressive trade measures.

His previous threats regarding tariffs on BRICS nations were reiterated in this latest statement, highlighting a continuity in his administration’s position against de-dollarization efforts.

How might BRICS countries respond to Trump’s tariff threat?

In response to Donald Trump’s recent threat of imposing 100% tariffs on BRICS nations if they pursue alternatives to the U.S. dollar, member countries are likely to adopt a multifaceted approach. Here are some potential responses:

Reciprocal Tariffs

Brazilian President Luiz Inácio Lula da Silva has already indicated that Brazil would respond in kind if the U.S. imposes tariffs on its exports. He emphasized the importance of mutual respect in international relations and suggested that Brazil would enact similar measures against U.S. goods if necessary.

Strengthening Internal Alliances

BRICS nations may seek to solidify their economic ties and cooperation within the group. This could involve enhancing trade agreements among member states and exploring ways to conduct transactions using local currencies instead of the dollar, as some members have already begun doing.

Accelerating De-dollarization Efforts

The threat from Trump might galvanize BRICS countries to expedite their plans for reducing reliance on the U.S. dollar. This could include initiatives to develop a unified BRICS currency or increasing the use of currencies like the Chinese yuan for trade, particularly in energy and commodities

Diplomatic Engagements

BRICS leaders may engage in diplomatic discussions to address the tariff threats collectively, potentially presenting a united front against U.S. economic pressure. This could involve joint statements or coordinated actions to mitigate the impact of Trump’s policies.

Exploring New Partnerships

Countries within BRICS might look to strengthen relationships with other nations that share similar interests in reducing dollar dependence. This could include fostering trade with other emerging markets or countries that are also exploring alternatives to the dollar.

Overall, while Trump’s threats represent a significant challenge, they may also serve as a catalyst for BRICS nations to deepen their collaboration and pursue strategies aimed at diminishing U.S. economic influence in global trade.