U.S. President Donald Trump threatened BRICS nations with complete trade restrictions when they try to develop another currency challenge the position of the U.S. dollar.
Through Truth Social Trump delivered an intense message stating “These hostile Countries must promise neither to establish a new BRICS Currency nor support another currency that would replace the powerful U.S. Dollar or they will receive 100% Tariffs.”
The members of the BRICS alliance consisting of Brazil, Russia, India, China and South Africa now actively seek alternatives to the U.S. dollar because of Western economic sanctions against Russia. The bloc received new members in 2023 when it added Egypt along with Ethiopia and Iran and the UAE and more recently added Indonesia. 
Prolonged discussions about the introduction of a BRICS currency have not led to any concrete implementation plan. Trump persists with the belief that any activities to weaken dollar dominance will result in serious repercussions. The head of BRICS declared that there is zero possibility for BRICS to displace the U.S. Dollar from its position in both international trade and other domains.
Trump issued this warning to both Canada and Mexico at a time when they are waiting for him to make a choice regarding imposing these tariffs on the U.S. trade partners starting February 1 due to their insufficient efforts in controlling drug trafficking and immigration issues.
The BRICS nations drive de-dollarization efforts yet research from the Atlantic Council’s GeoEconomics Center demonstrates that the U.S. dollar continues as the leading global reserve currency. The continuing economic deintegration drives the political movement toward alternative financial arrangements among bloc members.
Global markets closely observe the BRICS countries’ reactions after the intensifying trade tensions from Trump’s direction.
