Trump Warns of 100% Tariffs on Expanding BRICS Alliance Over Moves to Challenge U.S. Dollar Dominance

President-elect Donald Trump issued a bold ultimatum on Saturday, threatening 100% tariffs on imports from the BRICS alliance if the bloc continues efforts to reduce reliance on the U.S. dollar. Trump’s warning comes as the alliance grows in influence and openly explores alternatives to the dollar in global trade.

The BRICS Alliance and De-Dollarization

BRICS, originally an economic partnership between Brazil, Russia, India, China, and South Africa, has since expanded to include Egypt, Ethiopia, Iran, and the UAE. The alliance also has a growing list of potential members, including Turkey, Azerbaijan, and Malaysia. This expanding bloc represents a significant share of the world’s population and economy, and its members are increasingly united in their frustration with the dollar’s dominance.

For decades, the U.S. dollar has been the global standard for international trade, making up roughly 58% of foreign exchange reserves. Commodities like oil are still primarily traded in dollars, cementing the currency’s central role in the global economy. However, BRICS nations are actively exploring de-dollarization—replacing the dollar in trade with local or alternative currencies.

Trump responded to these efforts with a sharp warning on Truth Social:

> “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”

What Are Tariffs, and How Could They Impact BRICS?

Tariffs are taxes or duties placed on imported goods, designed to make foreign products more expensive and less competitive in domestic markets. A 100% tariff would effectively double the price of imports from BRICS nations, potentially crippling their ability to export to the U.S.

For countries like China, India, and Brazil—key players in the BRICS alliance—such a move could have severe economic consequences, disrupting trade flows and damaging industries reliant on U.S. consumers. At the same time, American businesses and consumers could feel the sting of higher prices on goods imported from BRICS countries, from electronics to agricultural products.

Historically, Trump has used tariffs as a tool to push for policy changes. His presidency saw sweeping tariffs on China, Canada, and Mexico, often leveraging trade as a bargaining chip. While some of these measures brought countries to the negotiating table, others triggered retaliatory tariffs, escalating trade wars that hurt industries on both sides.

Russia and BRICS’ Push for Alternatives

BRICS members have not been shy about their motivations. At a recent summit, Russian President Vladimir Putin accused the U.S. of “weaponizing” the dollar and using it to impose economic pressure through sanctions. Russia has been a vocal advocate for alternatives, including a new payment system outside of SWIFT, the global bank messaging network, which would allow sanctioned countries like Russia to trade more freely.

“It’s not us who refuse to use the dollar,” Putin said. “But if they don’t let us work, what can we do? We are forced to search for alternatives.”

Is the Dollar at Risk?

Despite BRICS’ ambitions, experts argue that the U.S. dollar’s dominance remains secure for now. A report from the Atlantic Council suggests the dollar is “safe in the near and medium term,” continuing to outperform other currencies as the world’s preferred reserve currency.

However, the rise of BRICS and their push for financial independence is a reminder that the global economic landscape is shifting. The bloc’s growing influence and efforts to challenge the dollar are unlikely to disappear, even in the face of steep U.S. tariffs.

A New Economic Showdown

Trump’s threat of 100% tariffs adds a new layer of tension to an already fraught economic relationship with BRICS nations. If enacted, such tariffs could reshape trade dynamics, impact global supply chains, and further strain relations between the U.S. and some of the world’s fastest-growing economies.

For now, the question remains: Will BRICS back down in the face of U.S. pressure, or will they push forward with their plans to rewrite the rules of global trade? As Trump prepares to begin his second term, the stakes for both sides couldn’t be higher.