US President Donald Trump has reiterated that countries in the BRICS alliance could face heavy tariffs if they proceed with plans to create a new currency. In a post on his social media platform, Truth Social, Trump stated that any attempt by BRICS nations to abandon the US dollar in favour of a new currency would trigger tariffs as high as 100%.
Trump’s warning comes in response to growing speculation about the BRICS group—consisting of Brazil, Russia, India, China, and South Africa—moving away from the US dollar in international trade. According to Trump, the United States will not tolerate such actions and is prepared to enforce strict tariffs if BRICS countries continue on this path. He emphasised that these nations must commit not to create a new currency or back any currency to replace the US dollar, or else face severe consequences.
The US president strongly rejected the idea that the BRICS countries could challenge the dominance of the dollar in global markets. He argued that no country or group could replace the US dollar in international trade and made it clear that any nation attempting to do so would face tariffs and other economic penalties.
This statement from Trump follows his earlier announcement about imposing tariffs on imports from Canada and Mexico, which he plans to introduce on February 1, 2025. The tariffs will be set at 25%, and Trump outlined several reasons for the move, including the ongoing challenges posed by illegal immigration, the flow of drugs like fentanyl into the United States, and the trade deficits with these countries. Trump also hinted that tariffs could increase over time, depending on the situation.
Furthermore, Trump raised the possibility of imposing tariffs on Canadian oil imports, depending on oil prices, stating that the United States does not need these products because it has sufficient domestic supply. His comments led to a rise in West Texas Intermediate crude oil futures, and the Canadian dollar fell while the US dollar strengthened.
Trump’s tariff threats are not limited to Canada and Mexico. Earlier this year, he ordered a 25% tariff on imports from Colombia after the country refused to accept deported migrants from the US. However, Colombia later agreed to Trump’s conditions, and the tariffs were suspended. Trump has also expressed his preference not to impose tariffs on China but has not ruled out that possibility.
