US President-elect Donald Trump threatened BRICS nations, including India, with 100% tariffs on Saturday. He demanded these countries pledge not to replace the US dollar or support any alternative currency.
Clear Warning to BRICS Countries
Trump took to Truth Social to deliver his warning. He said the idea of BRICS nations moving away from the US dollar was “over.” He stated that any country pursuing this would lose access to the US market. “They can go find another ‘sucker,'” he added. Trump emphasized that countries attempting to replace the dollar would face severe consequences.
Trump’s Ultimatum
Trump made it clear: “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 percent Tariffs.” He continued, “There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
Putin’s Proposal at BRICS Summit
Trump’s comments came after Russian President Vladimir Putin proposed creating a new investment platform for BRICS countries. At the BRICS summit in Kazan in October, Putin suggested this platform to reduce dependence on the US dollar. “We propose to set up a new investment platform of BRICS,” he said, aiming to provide financial support to the Global South.
Current Financial Platforms in BRICS
Currently, BRICS has two financial platforms: the New Development Bank and the Contingent Reserve Arrangement. The New Development Bank helps with infrastructure and sustainable development projects. Meanwhile, the Contingent Reserve Arrangement offers short-term liquidity support to mitigate financial crises among member countries.
BRICS Expansion and Future Plans
BRICS, which initially consisted of Brazil, Russia, India, China, and South Africa, expanded in 2024 to include Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia as full members. The group aims to strengthen financial stability in emerging economies.
