TLDR
- Donald Trump believes his menacing 150% tariffs led to disbandment among BRICS members over their ambition to rival the U.S. dollar.
- Trump disclosed at a gathering of the Republican Governors Association that he cautioned BRICS countries against challenging the dollar, backing his words with threats of trade standstills and increased tariffs.
- The BRICS collective is made up of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the UAE, and Indonesia.
- Initially, Trump floated a 100% tariff, bumping it up to 150% for any BRICS mention of 'damaging the dollar'.
- Russian leader Putin declares that BRICS is not ready to abandon the U.S. dollar any time soon, preferring to enhance trade in national currencies.
Ex-President Donald Trump boasts that his administration's tariff warnings put an end to BRICS' plans for a dollar substitute. He shared these views at the Republican Governors Association meeting on February 21, 2025.
BRICS—which comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia—is on a journey to lessen its dependency on the U.S. dollar in global transactions.
In his keynote, Trump described how he battled BRICS' currency strategies. To any BRICS nation hinting at the dollar's demise, a monstrous 150% tariff awaits, and 'we won't touch your goods,' he remarked emphatically.
The ex-president's first shot across the bow involved a 100% tariff on imports from BRICS nations eyeing an alternative currency or drifting away from the dollar, later amping it up to 150%.
Trump took a different tack compared to prior President Joe Biden, who viewed the issue as a complex dilemma. Trump touted his administration's robust strategy to counter threats against the dollar’s reign as the world's reserve currency.
Since 2009, BRICS has been the sole international club of its stature that the U.S. doesn't belong to. Various members have been experimenting with different strategies to break free from their reliance on the U.S. dollar as the go-to trade currency.
Trump proclaimed his policy’s success, saying, 'Haven’t heard much from BRICS lately.' He hailed it as a 'miraculous turnaround,' insisting the group had 'split,' although no solid evidence backs this.
In sharp contrast, Russian President Vladimir Putin has highlighted boosting trades in native currencies and reassured that BRICS isn't dropping the U.S. dollar anytime soon.
BRICS Reactions Mixed
BRICS' reply to Trump's tariff threats isn't unanimous. While some members delve into local currency trade avenues, others stand by the idea of a single currency that aligns with their sovereign priorities.
Despite the tariff threats, Iran, part of BRICS, continues to rally for a united currency alternative, showing enduring interest in economic alternatives.
BRICS' inquiry into new currency frameworks is part of a larger dialogue examining global trade transaction possibilities, with member countries exploring different methodologies for trade in native currencies.
Trump's story of a crumbling BRICS takes a twist, given the group's actual enlargement, now including Egypt, Ethiopia, Iran, the UAE, and Indonesia.
The ex-president's rhetoric frames tariff threats as a neat tool to safeguard the dollar’s global trade stronghold. 'BRICS was set up for nasty reasons, most don’t want it. They even dread mentioning it nowadays,' Trump attested.
According to Trump, BRICS nations are scared into silence by his tariff threats, though this assertion isn't substantiated by any notable declaration from those nations.
Recent happenings illustrate persistent activity within BRICS around financial collaboration, notwithstanding Trump's dissolution narratives.
