President warns BRICS nations for undermining the U.S. dollar’s dominance—announces fresh tariffs and questions bloc’s unity
At a recent White House cabinet meeting, President Donald Trump issued a sharp warning: any country aligning with the BRICS group—including India—will face a 10% tariff, signaling a major escalation in his trade policy.
Trump argued that BRICS was created to “hurt us,” weaken the U.S. dollar’s global reserve status, and challenge its supremacy. “Dollar is king,” he declared firmly, emphasizing that countries trying to dethrone it “are gonna have to pay a big price.” apnews.com+15reuters.com+15livemint.com+15
Charging at Currency Rebels
During the meeting, Trump explained his tariff plan bluntly: “If they’re in BRICS, they’re gonna have to pay a 10 per cent tariff… So anybody that is in BRICS is getting a 10 per cent charge.” livemint.com+3hindustantimes.com+3indianexpress.com+3 He added that the BRICS group had largely fallen apart, with just “a couple of them hanging around,” but was nonetheless intent on protecting the dollar by meeting any challenge with economic retaliation. hindustantimes.com+1livemint.com+1
A Battle Over the Dollar
Trump painted the situation in stark terms: losing the dollar’s reserve status would be comparable to losing “a war, a major world war.” He criticized the Biden administration for letting U.S. influence slip, stating, “If you have a stupid president … you would lose the standard.” reuters.com+6hindustantimes.com+6indiatoday.in+6
He contrasted this with his own approach, saying, “We’re gonna keep it that way.”
Is This Economic Strategy or Rhetoric?
This threat comes on top of earlier tariffs announced on goods from 14 nations, some as high as 40%, during the broader trade blitz from Trump’s “Liberation Day” orders. tribuneindia.com+4indiatoday.in+4hindustantimes.com+4en.wikipedia.org+2reuters.com+2en.wikipedia.org+2
But critics argue this move is less about real economic strategy and more about performative diplomacy. BRICS nations, including India, have been working on de-dollarization strategies, but Americans aren’t rushing to abandon the dollar just yet. In fact, global reliance on U.S. currency has barely budged, still hovering around 59–60% of global reserves. livemint.com
In markets, the announcement rattled confidence—India’s rupee swung and regional stocks in Asia dipped as investors braced for instability.
The Shrinking Power of BRICS?
Despite Trump’s dire warnings, analysts note that BRICS is far from “broken.” Its members—Brazil, Russia, India, China, South Africa, and newcomers like Indonesia and Saudi Arabia—have expanded economic ties and continue to explore post-dollar currencies. reuters.com+10en.wikipedia.org+10m.economictimes.com+10
Lula da Silva, Brazil’s President, even rebuked Trump’s remarks, accusing the U.S. of acting like an “emperor” trying to punish those who “deal among themselves.” reuters.com
Final Take: A High-Stakes Gamble With Uncertain Payoff
Trump’s aggressive stance—threatening tariffs on strategic trade partners for economic independence—is a high-risk gamble. If his goal is to preserve the dollar’s dominance, the strategy hinges on using economic coercion to undermine any move away from the U.S. financial system.
But the real test lies ahead. Will this pressure backfire by pushing BRICS economies closer together? Or will it force them back into using the dollar despite their ambitions? Either way, this isn’t just a trade war—it’s a clash for the future global economic order.