President-elect Donald Trump has warned that if countries within the BRICS group create or back a new currency to challenge the U.S. dollar, they will face a severe economic backlash in the form of 100% tariffs on goods sold to the U.S. He announced this aggressive trade stance on his Truth Social platform, adding another layer to his already assertive approach to global economics.

Trump’s declaration came amid growing concerns over the potential for the BRICS bloc to undermine the U.S. dollar’s dominance in global trade. The group, historically aligned with China and Russia, has been exploring ways to reduce its reliance on the dollar, which has been a central pillar of the global financial system. This includes discussions on utilizing local currencies for trade or even creating a new BRICS-backed currency.

"The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER," Trump posted 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."

Trump’s statement echoed his broader ‘America First’ economic policy, which emphasizes reducing U.S. reliance on foreign imports and revisiting trade deals that he claims are detrimental to American interests. He further emphasized, "They can go find another sucker. 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."

The BRICS group, originally composed of Brazil, Russia, India, China, and South Africa, has grown to include Egypt, the UAE, Ethiopia, and Iran in recent years. The expansion of the group signals its growing influence, particularly in the face of increasing U.S. sanctions on nations like Russia and Iran. Countries such as Brazil have also floated ideas to reduce dependency on the U.S. dollar by advocating for a shared regional currency, especially in South America.

In response to Trump’s threat, South African Foreign Minister Naledi Pandor remarked in February that the BRICS group remains united in its goal of establishing stronger economic partnerships outside Western-dominated financial systems. However, some members, including Brazil’s President Luiz Inácio Lula da Silva, have proposed a common currency for South America as part of a broader effort to challenge U.S. dollar hegemony. Despite these ideas, Russian President Vladimir Putin downplayed any immediate move toward a BRICS currency, stating in October, “Its time has not come yet,” adding that the group was more focused on using national currencies in trade while carefully considering next steps.

The Economic Ramifications of 100% Tariffs

The potential for 100% tariffs on goods from BRICS nations raises alarms over a possible global economic destabilization. Analysts warn that such tariffs would significantly increase the cost of goods imported to the U.S. from countries within the BRICS group, leading to higher inflation and a shift in global trade patterns.

If implemented, the tariffs could lead to a sharp rise in consumer prices in the U.S., affecting everything from electronics and machinery to raw materials like oil and minerals. Additionally, the escalating trade tensions could escalate into a full-blown global trade war, further destabilizing the international economy.