US President-elect Donald Trump has issued a stern warning to BRICS nations, demanding they abandon any plans to establish a new currency or use alternatives to the US dollar in international trade. In a fiery statement posted on his platform, Truth Social, Trump threatened punitive measures against countries that challenge the dominance of the US dollar.
“We need a commitment from these countries not to create a new BRICS currency or support any other currency to replace the powerful US dollar. Otherwise, they will face 100% tariffs and say goodbye to trade with the US, our wonderful economy,” Trump declared.
Trump’s rhetoric underscores his firm stance against attempts to undermine the US dollar’s global supremacy. He further dismissed BRICS’ aspirations for monetary independence, stating:
“They can find any ‘idiot’ they want, but there is no chance that BRICS will replace the US dollar in international trade. Any country that tries to do so should wave goodbye to America.”
BRICS’ Growing Influence in Global Trade
BRICS, established in 2006 by Brazil, Russia, India, and China, later expanded to include South Africa in 2010. This bloc was created as a counterbalance to the dominance of Western powers, including the United States. The alliance has grown stronger, and in 2024, new members such as Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE joined the group. Several other nations, including Thailand, have also expressed interest in joining.
Currently, BRICS countries represent:
- 33.9% of the world’s land area
- 45.7% of the global population
This substantial demographic and geographic footprint grants BRICS significant leverage to influence global trade and challenge Western economic hegemony.
Shifting Away from the US Dollar
In recent years, BRICS members have begun trading in local currencies to reduce reliance on the US dollar. Discussions about creating a common BRICS currency have also gained momentum. The trend is clear: the influence of the US dollar is slowly eroding in certain sectors.
- Historically, the US dollar dominated global trade, accounting for approximately 90% of all currency trades.
- Until recently, almost 100% of oil trades were conducted in US dollars.
- However, by 2023, about 20% of oil trades within BRICS were conducted in non-dollar currencies, with the percentage expected to rise further.
Geopolitical tensions, including the Russia-Ukraine conflict, have accelerated the move toward currency diversification, particularly within BRICS nations.
US Dollar’s Role at Risk
Trump’s warning comes amid fears that the dollar’s dominance could be challenged, particularly as BRICS nations explore alternatives. The group’s annual summits, which set the strategic direction for the bloc, are closely watched for decisions that could impact global trade dynamics and power balances.
The implications of BRICS’ currency ambitions and the US response could reshape global economic and geopolitical landscapes in the coming years.
