Trump’s Bold Warning: 100% Tariff on BRIC Nations Looms If They Challenge the US Dollar

WEST PALM BEACH, Fla. — President-elect Donald Trump asserted on Saturday that there is “no chance” the BRIC alliance will replace the U.S. dollar in global trade. He issued stark warnings to any country considering a move that could undermine the dollar, suggesting they “should wave goodbye to America.”

Trump’s remarks were specifically aimed at members of the BRIC bloc, which includes Brazil, Russia, India, China, South Africa, along with recently engaged nations like Egypt, Ethiopia, Iran, and the United Arab Emirates. Potential new members Turkey, Azerbaijan, and Malaysia have also expressed interest in joining this coalition.

The U.S. dollar dominates global finance, representing about 58% of foreign exchange reserves, as reported by the IMF. Major global commodities, particularly oil, continue to be traded predominantly in dollars. However, frustration with U.S. financial hegemony is palpable among BRIC nations and various developing economies, leading to discussions around de-dollarization.

In a post on Truth Social, Trump laid down an ultimatum: countries must commit to not creating a BRICS currency or backing alternatives to the U.S. dollar. Failure to comply would result in 100% tariffs on their exports to the United States, he stated, emphasizing that such countries should expect to “say goodbye” to opportunities within the American market.

This tension precedes recent remarks made by Russian President Vladimir Putin at a BRIC summit, where he accused the U.S. of “weaponizing” the dollar while advocating for a new payment system to sidestep Western sanctions and maintain trade with allies.

While Trump’s assertions reflect current geopolitical dynamics, research indicates that the dollar is secure as the primary global reserve currency for the near future. An analysis from the Atlantic Council underscores the dollar’s enduring dominance over other currencies.

Notably, Trump’s tariff threats extend beyond BRIC nations. He has previously considered imposing 25% tariffs on goods imported from Mexico and Canada and an additional 10% on Chinese imports. Following discussions with global leaders, there remains uncertainty regarding the potential for a tariff battle, particularly with Canada, as Prime Minister Justin Trudeau returned from meetings without clear assurances. Meanwhile, Mexican President Claudia Sheinbaum expressed hope that a tariff war could be prevented.