US President Donald Trump has issued a stern warning to BRICS countries—Brazil, Russia, India, China, and South Africa—over their attempts to abandon the US dollar as the dominant global currency. In a fiery statement, Trump declared the possibility of slapping 100% customs duties on goods from these countries if they proceed with plans to create a new reserve currency to rival the dollar.
The move, which Trump framed as protecting America’s economic interests, underlines Washington’s resistance to efforts aimed at dethroning the dollar as the world’s primary reserve currency. According to a report by Reuters, Trump emphasised that the US dollar remains the cornerstone of the global economy and cautioned that any such actions could significantly disrupt economic relations with the United States.
The threat comes as BRICS countries are openly discussing ways to reduce their dependence on the US dollar, with talk of developing an alternative reserve currency gaining momentum. While details of these plans remain speculative, their implications have already prompted a forceful response from Washington, signalling potential economic retaliation.
Trump’s latest comments are seen as a continuation of his America-first economic policies, prioritising US dominance in international trade and finance. The proposed punitive measures, if implemented, could significantly affect the export markets of BRICS countries, further complicating already tense geopolitical dynamics.
| Key Players | Action/Response | Impact |
|---|---|---|
| BRICS Countries | Discussing creation of a reserve currency to rival the US dollar. | Potential economic diversification. |
| United States (Trump) | Threatened 100% customs duties on BRICS exports to the US. | Escalation of economic and diplomatic tensions. |
