The BRICS bloc, an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE, continues its push for stronger financial cooperation aimed at reducing reliance on the US dollar in global trade. The bloc’s agenda includes developing alternative frameworks to counter the Western-dominated payment systems. This move is particularly significant given that the US dollar remains the most-used currency in global business and accounts for approximately 58% of the world’s foreign exchange reserves, according to the International Monetary Fund (IMF).
During an October BRICS summit, Russian President Vladimir Putin criticized the United States for “weaponising” the dollar, calling it a “big mistake.” His remarks reflect growing dissatisfaction among some nations with the dominance of the dollar and its perceived use as a tool for geopolitical leverage. Major commodities, such as oil, are still predominantly traded in dollars, making the currency’s global position difficult to unseat.
Reacting to the BRICS’ push for financial autonomy, former US President Donald Trump took to X (formerly Twitter) on Sunday, calling for a hardline approach. Trump demanded a commitment from BRICS nations to abandon their plans of creating a new currency or backing another currency to replace 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 posted. He warned that failure to comply would result in 100% tariffs on their exports to the US. “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.”
Trump’s proposed policy carries significant implications. Imposing 100% tariffs on BRICS exports could trigger a global trade war, increasing prices for American consumers and disrupting supply chains. Additionally, such a move risks alienating key trade partners, pushing them further toward alternative financial systems and alliances. While the dollar’s dominance is unlikely to wane quickly, aggressive policies could accelerate efforts by nations to establish systems independent of US influence, potentially reshaping global economic dynamics.