United States President Donald Trump on Friday reiterated his threat to impose 100% import tariffs on BRICS countries if they moved towards reducing reliance on the US dollar in global trade, reported The Indian Express.

In a post on Truth Social, Trump said the US “will not stand idly by” while BRICS countries develop an alternative currency.

The BRICS group, initially comprising Brazil, Russia, India, China and South Africa, has expanded to include Iran, Saudi Arabia, the United Arab Emirates, Argentina, Egypt and Ethiopia.

Trump’s warning came a day after he announced that 25% tariffs on Canada and Mexico would take effect on Saturday. He said he was still considering whether to include oil in the import taxes, reported AP.

On Friday, he demanded that BRICS nations stop efforts to create or support currencies competing with the US dollar, warning of severe consequences, including 100% import tariffs and restricted access to the American market.

Dismissing the idea that BRICS could challenge the dollar’s global dominance, Trump called it “mighty” and irreplaceable. “There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else,” he wrote. He also issued an ultimatum: “Any Country that tries should say hello to Tariffs, and goodbye to America!”

The BRICS bloc, representing major emerging economies, has been vocal about creating alternatives to the dollar, with Russia and China leading the call for a new reserve currency. A BRICS currency proposal was discussed at last year’s summit in South Africa and the October summit in Russia’s Kazan.

On December 1, Trump threatened 100% tariffs on the BRICS bloc and its allies unless they abandon efforts to reduce dependence on the dollar. “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump had said.

The warnings have been in line with Trump’s trade policy tactics from his first term, where he imposed tariffs to balance trade deficits and support US manufacturing.

India’s position

India has also been working to reduce its reliance on the US dollar and internationalise the Indian rupee. In 2022, the Reserve Bank of India allowed international trade to be invoiced and paid in rupees, following sanctions on Russia due to the war in Ukraine.

Prime Minister Narendra Modi had said in October, in his remarks at the BRICS summits, that India “welcome[d] efforts to increase financial integration among BRICS countries” and that “trade in local currencies and smooth cross-border payments will strengthen our economic cooperation”.

In November 2024, External Affairs Minister S Jaishankar told the India-Russia Intergovernmental Commission meeting in Mumbai that “mutual settlement of trade in national currencies is of great importance, especially in the current circumstances”.