Michael Vadon
US President Donald Trump stated on Friday that the Brics coalition, which includes India, has effectively disbanded following his warning of imposing a 150 percent tariff in response to actions perceived as undermining the US dollar.
Trump has consistently warned Brics nations against any attempts to supplant the US dollar as the primary global reserve currency, indicating that significant trade penalties would be imposed should they pursue such alternatives.
“I am uncertain about what transpired with them. We have not received any communication from the Brics nations recently,” Trump commented. “The Brics nations were attempting to undermine our dollar. They aimed to establish a new currency. Therefore, upon my arrival, I declared that any Brics nation that even hints at the destruction of the dollar would face a 150 percent tariff, and we do not wish to import your goods, which led to the disbandment of the Brics coalition,” he added.
Brics is an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the UAE.
Reaffirming his position, Trump noted that he has not received any updates regarding Brics since the tariff warning was issued. “I am uncertain about what transpired with them. We have not received any communication from the Brics nations recently,” he reiterated.
On February 13, Trump issued a stern warning, indicating that Brics nations could be subjected to 100 percent tariffs from the United States if they choose to “play games with the dollar.” He proclaimed that Brics was essentially ‘dead’ and emphasized that the US would halt trade with member countries if they attempted to supplant the dollar with an alternative currency.
In a post on X through his platform Truth Social, Trump articulated his firm opposition to any movement away from the US dollar. He stated, “The notion that the Brics countries are attempting to distance themselves from the dollar, while we passively observe, is OVER.”
Demonstrating strong opposition to the establishment of a Brics currency, Trump asserted, “We will demand a commitment from these seemingly antagonistic nations that they will neither establish a new Brics currency nor support any other currency to replace the formidable US dollar, or they will encounter 100% tariffs and should prepare to bid farewell to access to the thriving US economy.”
They may seek out another naive nation. The likelihood of BRICS supplanting the US dollar in international trade or any other domain is nonexistent, and any nation attempting such a move should prepare for tariffs and bid farewell to America,” he stated.
Trump’s caution comes in the wake of similar comments made earlier this month, where he warned BRICS against participating in the ‘de-dollarisation’ of the global economy. “They (BRICS) attempted to undermine the United States, and if they pursue that path, they will not be pleased with the consequences,” Trump remarked to reporters in the Oval Office.
This position mirrors a prior statement from December, in which Trump threatened punitive tariffs should BRICS continue its efforts to diminish reliance on the US dollar.
BRICS nations have been actively working to lessen their dependence on the US dollar in trade and finance. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin highlighted the significance of de-dollarisation, asserting, “BRICS countries must broaden settlements in national currencies and strengthen cooperation among banks.”
In June 2024, during a meeting in Nizhny Novgorod, Russia, BRICS foreign ministers reiterated their dedication to reducing dollar dependence, expressing support for the “increased use of local currencies in bilateral and multilateral trade and financial transactions among member countries.”
