2 December 2024, Washington: U.S. President Donald Trump, known for his tough stance on trade policies, has issued a stern warning to the BRICS nations, including India. In a bold statement on Saturday, Trump threatened to impose a 100% tariff on these countries if they attempt to weaken or replace the U.S. dollar in international trade. This warning has stirred concerns globally, especially in India, a key member of the BRICS bloc.
Trump’s Warning to BRICS Nations
On his social media platform, Truth Social, Trump expressed his dissatisfaction with BRICS nations’ efforts to move away from the U.S. dollar. He declared:
“The idea that BRICS countries are trying to distance themselves from the dollar while we sit and watch is over. These nations must commit to not creating a new BRICS currency or supporting any alternative to the powerful U.S. dollar. Otherwise, they will face a 100% tariff and say goodbye to the incredible U.S. economy.”
The BRICS group, comprising Brazil, Russia, India, China, and South Africa, recently expanded to include Iran, Egypt, Ethiopia, and the UAE. Since its inception in 2009, BRICS has sought to provide an alternative platform to Western-dominated international groups. While Russia and China have spearheaded efforts to explore a common BRICS currency, India has largely refrained from participating in such moves.
Trump’s Position on Economic Sovereignty
Trump’s post emphasized his determination to protect the dominance of the U.S. dollar. He stated, “There’s no chance BRICS will replace the U.S. dollar in international trade. Any country attempting this will lose access to the American market.”
This statement comes after the 2023 BRICS Summit in South Africa, where member nations explored the feasibility of a shared currency. Although Brazil proposed this idea, India made its stance clear, distancing itself from any anti-dollar agenda.
India’s Stance on De-Dollarization
India’s Foreign Minister, S. Jaishankar, has reiterated that India has no intention of actively targeting the U.S. dollar. Speaking at the Carnegie Endowment for International Peace earlier this year, he clarified,
“We have never targeted the dollar as part of our economic, political, or strategic policies. Some others may have done so, but that’s not our approach.”
Jaishankar highlighted practical concerns in international trade, stating,
“We sometimes face challenges with partners who lack access to dollars. This necessitates finding alternative solutions. However, there’s no malicious intent behind these efforts; we are simply trying to facilitate business.”
Global Implications of Trump’s Threat
Trump’s warning could complicate international trade dynamics. While India continues to emphasize its neutrality on the de-dollarization issue, countries like Russia and China remain keen on reducing dependence on the dollar. The increasing tension underscores the evolving global economic landscape, with BRICS nations striving for greater financial autonomy.
Donald Trump’s bold declaration has once again highlighted the central role of the U.S. dollar in global trade. While the BRICS bloc explores ways to challenge the dollar’s dominance, India’s balanced approach ensures its trade relationships remain stable. However, as Trump’s potential return to power looms, his aggressive stance could reshape the global economic order, with significant implications for BRICS nations and beyond.