U.S. President Donald Trump vowed on Jan. 31 to impose 100% tariffs on BRICS countries if they attempt to use new or existing currency to replace the U.S. dollar in international trade.
"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," Trump posted on his social media platform Truth Social, repeating his threats from last year.
"There is no chance that BRICS will replace the U.S. dollar in international trade, or anywhere else, and any country that tries should say hello to tariffs, and goodbye to America."
The BRICS group, composed of Russia, China, India, Brazil, and other nations, has been exploring ways to reduce reliance on the U.S. dollar.
A report by the Russian Finance Ministry, the Bank of Russia, and consultancy Yakov & Partners from last October proposed a "multicurrency system" to shield BRICS members from external pressures like sanctions. The plan includes creating centers for mutual trade in commodities such as oil, natural gas, grain, and gold.
After Russia's full-scale invasion of Ukraine in February 2022, the U.S. and its allies imposed heavy sanctions on Moscow, freezing Russia's foreign assets and removing major Russian banks from the SWIFT international banking system. In response, Russia sought to reduce its reliance on the dollar.
Kateryna Hodunova
BRICS members are not unified on the issue. While China supports strengthening alternative currencies, it remains cautious about adopting a common one. India, focused on domestic economic interests, is unwilling to risk trade stability with the U.S.
Russian President Vladimir Putin said on Oct. 18, 2024, that there are no plans to create a BRICS currency, emphasizing the need for caution.
Kremlin spokesperson Dmitry Peskov reiterated this after Trump's threats, claiming that BRICS is discussing new investment platforms. "BRICS countries are not discussing the creation of a common currency," Peskov said.
The news comes after Trump urged Russia to "make a deal" to end its war against Ukraine, warning of increased sanctions, tariffs, and taxes on Russian goods if no agreement is reached.
BRICS expanded in 2024, admitting Egypt, Ethiopia, Iran, and the United Arab Emirates as new members. Putin hosted a BRICS forum in Kazan in October 2024, attended by 36 world leaders, and announced plans to invite new partner countries.
Kateryna Hodunova
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