President Donald Trump has issued a stern warning to members of the BRICS economic bloc, threatening a 10 per cent tariff on goods from countries that, in his words, attempt to challenge the dominance of the U.S. dollar.
Speaking at the White House on Friday after signing a cryptocurrency bill into law, Trump took direct aim at BRICS, a coalition he accused of trying to displace the dollar from its central role in global trade.
“BRICS, they wanted to try and take over the dollar — the dominance of the dollar and the standard of the dollar,” Trump said.
“We’re not going to let that happen. Not on my watch.”
The president claimed that his warning had already had a chilling effect on the bloc.
“They had a meeting after I issued the tariff threat, and it was poorly attended. They didn’t want to be tariffed.”
Rising tensions over currency and trade
BRICS – comprising Brazil, Russia, India, China, and South Africa, and recently expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE – has in recent years explored alternatives to the US dollar in cross-border trade. While not formally advocating “de-dollarisation,” several members have expressed interest in using local currencies for international settlements.
Trump, however, views any such move as a threat to US financial primacy.
The White House has now set an August 1 deadline for countries to reach trade agreements with the United States. A previous deadline of July 9 passed without resolution. Trump said letters would be sent to individual countries detailing the tariff rates if no agreement is reached.
“I hit them very, very hard, and it will end very quickly,” he said.
“They’re virtually afraid to meet.”
India distances itself from the de-dollarisation push
India, a key BRICS member, has moved to distance itself from any talk of replacing the dollar. On July 17, External Affairs Ministry spokesperson Randhir Jaiswal clarified that while discussions on cross-border payments in local currencies had taken place, de-dollarisation was “not on the agenda.”
“Cross-border payments, yes, BRICS have talked about local currencies. But de-dollarisation is not something that is there on the agenda,” Jaiswal said.
No digital dollar under Trump
Alongside the tariff threat, Trump also took the opportunity to reiterate his opposition to a U.S. central bank digital currency.
“That won’t happen under my administration,” he declared.
This marks the second time Trump has used tariffs as a tool to push back against BRICS. In 2024, he threatened to impose 100 per cent tariffs if the bloc moved ahead with plans to create a joint currency to rival the dollar.
With global power dynamics shifting, Trump’s remarks reflect a renewed assertion of economic nationalism, aimed at preserving what he sees as America’s most strategic asset: the dollar.