In a move that could trigger a global economic shake-up, former US President Donald Trump has reiterated his threat to impose a 100 percent tariff on the BRICS nations — Brazil, Russia, India, China, and South Africa. This warning comes at a critical time, with the bloc of emerging economies increasingly showing signs of distancing themselves from the US dollar.
On January 31, 2025, Trump posted a fiery message on his Truth Social platform, underscoring his intention to take drastic action if BRICS continues to explore alternatives to the US dollar in international trade. “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER,” Trump declared, setting the stage for a new round of tariff escalation.
BRICS has long been at the center of growing geopolitical tension, with the nations considering the creation of a new currency or strengthening regional financial networks to lessen their dependence on the US dollar. This shift has sparked fears within the US that the global dominance of its currency could be at risk, a scenario that Trump has vowed to thwart at all costs.
The former president’s comments came just days before a self-imposed deadline to finalize tariffs on Canada and Mexico, as part of a broader strategy to combat illegal immigration and the flow of fentanyl into the United States. Trump had already warned these two neighboring countries with a 25 percent tariff unless they take immediate action to stem the tide of illicit drug trade and border crossings. However, his focus soon shifted to BRICS as the bloc’s financial maneuvers have raised alarm bells in Washington.
A Looming Deadline and a Global Standoff
While Trump’s tariff threat has garnered significant attention, it is his broader strategy of using tariffs as a tool to enforce US interests that is shaking the global economic order. His decision to place such an intense focus on BRICS nations signals a clear challenge to their economic independence. In the eyes of the Trump administration, any movement to de-dollarize or create alternatives to the US currency could signal a major shift in global economic power.
“BRICS has already hinted at alternatives to the US dollar, and this is a threat that can no longer be ignored,” explained Dr. Emmanuel Chike, a Nigerian economist and expert on international relations. “Trump’s strategy of using tariffs as a form of economic diplomacy is aimed at sending a strong message that the US will not stand idly by as these countries challenge the dollar’s supremacy.”
The BRICS group has been discussing the possibility of creating its own currency or financial system as part of its efforts to diversify economic influence and reduce reliance on the West. Several high-level discussions and reports have outlined potential strategies, ranging from digital currencies to new trade agreements that bypass the dollar.
However, the US sees this as a threat to its economic hegemony, and Trump’s rhetoric has amplified concerns about a trade war that could escalate tensions with some of the world’s largest economies. The possibility of 100 percent tariffs on goods from BRICS nations would be an unprecedented move, sparking fears of a deepening global economic divide.
A Crisis of Confidence in the Global Market
Economists argue that Trump’s stance could not only harm US relations with these nations but also shake the confidence of international markets that have long viewed the US dollar as the bedrock of global trade. The potential tariffs would hit key sectors, from energy exports to technology and agricultural goods, with China, India, and Russia among the top US trading partners.
“In an interconnected global economy, a tariff of this magnitude would disrupt supply chains, increase inflation, and escalate geopolitical tensions,” said Professor Linda Afolabi, a global trade expert at the University of Lagos. “BRICS countries are significant players in global trade, and a retaliatory tariff could have far-reaching consequences.”
In particular, China, a powerful BRICS member, has already been the target of Trump’s tariffs during his presidency. At the time, the US imposed substantial duties on Chinese imports, citing unfair trade practices and intellectual property theft. This latest threat signals that tensions between the US and China, as well as other BRICS nations, are far from resolved.
South Africa, while less vocal in challenging the dollar, has nevertheless participated in the broader BRICS discussions about alternatives to the dollar. Experts warn that if Trump’s tariff proposal were to go into effect, it would likely strain diplomatic relations between the US and these nations, leading to a potential shift in how international trade is conducted.
A Strategic Shift in Global Finance
The economic maneuvering by BRICS countries is not without its motivations. Brazil and Russia have long been pushing for a reduction in their reliance on the US dollar, citing the risks posed by sanctions and the volatility of US financial policies. The notion of a BRICS-backed currency or a broader financial alliance is seen by many as an attempt to safeguard against economic coercion from Western powers.
“The BRICS countries are not only challenging the financial status quo but also positioning themselves as an alternative power bloc to Western-dominated financial institutions,” said Dr. Amina Olorunfemi, a political economist based in Abuja. “If these nations succeed in developing their own currency or trade system, it could signal the beginning of a new economic order — one that doesn’t revolve around the US dollar.”
However, this shift has not come without challenges. Experts agree that developing a new currency or financial system that can compete with the dollar is a monumental task. It requires significant economic coordination, trust between member nations, and the creation of a solid infrastructure to support the currency. For now, the push for a BRICS currency remains in the conceptual stages, with much work to be done before it can materialize into something concrete.
