Trump Warns BRICS Nations to Avoid Dollar Shift: “Go Find Another Sucker Nation”

Er Mukesh Singh

Donald Trump has consistently opposed de-dollarisation, cautioning that BRICS nations must preserve the US dollar’s dominance in global trade to avoid economic repercussions.

On Friday, US President Donald Trump issued a stern warning to BRICS nations, threatening to impose 100% tariffs on their exports if they attempt to replace the US dollar as the dominant currency in international trade. Trump’s statement underscores his strong opposition to de-dollarisation, a growing trend among countries seeking alternatives to the US dollar in global transactions.

Trump has consistently emphasized that the US dollar’s dominance is essential for global economic stability. He warned BRICS nations — Brazil, Russia, India, China, and South Africa — that any efforts to diminish the dollar’s role could lead to severe economic consequences, particularly in the form of steep tariffs on their goods.

This warning highlights the US administration’s commitment to maintaining the US dollar’s position at the center of global trade and finance. It also serves as a reminder of the broader geopolitical tensions surrounding the dollar’s influence, with some countries exploring other currencies to bypass reliance on the dollar. However, Trump’s remarks suggest that any shift away from the dollar would be met with a strong economic response from the United States.

In a recent statement, US President Donald Trump made it clear that the era of passively watching BRICS nations attempt to move away from the US dollar is over. “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER,” Trump wrote. He further emphasized that the US would require a commitment from these nations to refrain from creating a new BRICS currency or backing any alternative currencies to replace the US dollar.

Trump warned that any attempt to replace the US dollar would result in severe economic consequences, specifically 100% tariffs on exports to the US. He added, “They can go find another sucker nation,” suggesting that these countries would lose access to the vast US economy if they pursued such a move.

Reaffirming his position, Trump declared that there was “no chance” the BRICS nations would replace the US dollar in international trade or any other sphere, warning that any country attempting to do so would face significant tariffs and be effectively cut off from the US market.

Donald Trump’s recent post closely mirrors a similar one he made on November 30, shortly after securing victory in the 2024 presidential election. In both posts, Trump firmly reiterated his stance against de-dollarisation and warned the BRICS nations of economic consequences if they attempt to replace the US dollar in global trade.

The BRICS group, comprising Brazil, Russia, India, China, and South Africa, has been exploring ways to reduce its dependence on the US dollar for several years. The economic collaboration among these nations has gained momentum, particularly after Western sanctions were imposed on Russia following its invasion of Ukraine. In recent years, the group has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, forming the broader BRICS+.

Although BRICS+ does not have a shared currency, its members have been advocating for trade in their local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin explicitly called for de-dollarisation, emphasizing the need for BRICS nations to “expand settlements in national currencies and enhance cooperation between banks.” Despite these efforts, Trump’s warning underscores the US government’s firm commitment to maintaining the dollar’s central role in international trade.

The push for de-dollarisation gained significant momentum at the June 2024 BRICS foreign ministers’ meeting in Russia, where member states advocated for using local currencies in both bilateral and multilateral trade. This move aligns with the broader BRICS+ initiative to reduce reliance on the US dollar and increase the use of national currencies for transactions among its members.

Despite these efforts, the US dollar remains the world’s dominant reserve currency. A study conducted by the Atlantic Council’s GeoEconomics Center in 2023 found that neither the euro nor BRICS+ nations had made substantial progress in reducing global dependence on the dollar, highlighting its enduring influence in the global financial system.

Trump’s recent threats to impose tariffs on BRICS+ nations are part of his broader strategy to protect the US dollar’s dominance. His use of tariffs as leverage is consistent with his past approach, including recent threats to impose tariffs on Mexico and Canada, the US’s largest trading partners. Trump has justified these tariffs as essential measures to address issues like illegal immigration and drug trafficking, particularly fentanyl, which he claims is a significant threat to the US. Through these policies, Trump aims to safeguard American economic interests and maintain the US dollar’s central role in international trade.

During his campaign, Donald Trump criticized India as a “very big abuser” of trade policies, a sentiment he has now extended to other BRICS+ nations. Trump has argued that by imposing higher tariffs on foreign countries, he can reduce taxes for American businesses and workers, encouraging factories to return to the US and boosting domestic production.

However, this approach has faced significant skepticism from economists. Critics warn that the imposition of tariffs could raise costs for American consumers and businesses, especially in industries dependent on imported raw materials or components. These higher costs could be passed on to consumers in the form of increased prices, potentially harming the very workers and businesses Trump aims to support. The long-term economic impact of such tariffs remains a point of contention, with some arguing that the strategy could backfire and disrupt global supply chains.

Courtesy: ETV Andhra Pradesh

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