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In a bold statement on his first day back in the White House as the 47th President of the United States, Donald Trump asserted that BRICS nations do not hold leverage over the U.S. economy. Speaking to reporters in the Oval Office, Trump emphasized that Washington, in fact, has the upper hand. “If the BRICS nations even think about doing what they thought, they’ll face a 100% tariff,” Trump stated, referring to the bloc’s moves to reduce reliance on the U.S. dollar.
Trump’s declaration included a potential 100% tariff on BRICS nations, which include India, Russia, China, Brazil, South Africa, and newer members such as Egypt and the UAE. This measure, he suggested, was a direct response to discussions within BRICS about reducing the dominance of the U.S. dollar in global trade. Trump underscored that his stance was not a threat but a definitive position to protect American interests.
Trump’s Previous Warnings on De-Dollarization
Before his inauguration, Trump had expressed concern over BRICS’ de-dollarization efforts. In December 2024, he posted on Truth Social, “The idea that BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER.” He made it clear that any attempts to create an alternative global currency would face strong opposition from the U.S.
India’s External Affairs Minister, S. Jaishankar, had previously addressed these concerns, affirming that India had no interest in weakening the U.S. dollar. Speaking at the Doha Forum in 2024, Jaishankar said, “There is no proposal to have a BRICS currency. The U.S. remains our largest trade partner, and we have no interest in de-dollarization.”
The BRICS bloc has been actively exploring ways to challenge the dominance of the U.S. dollar. This discussion gained momentum after the U.S.-led sanctions on Russia in 2022. At the 2023 BRICS summit, Russian President Vladimir Putin advocated for expanding trade in national currencies and enhancing inter-bank cooperation. These moves aim to establish a new global financial order, reducing dependence on the U.S. dollar.
Trump’s Economic Strategy and Executive Orders
On his first day in office, Trump signed several executive orders, including the reversal of 78 orders implemented by his predecessor, Joe Biden. Among these, Trump officially withdrew the U.S. from the Paris Climate Accord and hinted at imposing a 25% tariff on Canada and Mexico by February 1. Trump’s administration has consistently sought to reinforce the U.S. dollar’s position as the world’s reserve currency and penalize any nation challenging its supremacy.
India, a key BRICS member, finds itself in a delicate position. With its strong trade ties with the U.S., New Delhi’s approach to de-dollarization remains cautious. The personal rapport between Indian Prime Minister Narendra Modi and Donald Trump, established during Trump’s first term, may play a pivotal role in navigating these complex trade dynamics.
Trump’s renewed presidency signals a firm stance against BRICS’ efforts to challenge the U.S. dollar’s dominance. With potential tariffs looming, the global trade landscape is set for significant changes. As Trump reiterated, the U.S. is prepared to defend its economic interests against any perceived threats, reinforcing its position in the international financial system.
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