President Donald Trump has issued a stark warning to BRICS nations, asserting that any attempts to undermine the US dollar will face severe economic consequences. He has threatened to impose a 10% tariff on imports from the BRICS group and vowed to ‘hit them very hard.’ Trump claimed his threats have disrupted the BRICS summit, with limited attendance. The BRICS nations, however, have proceeded with the summit, with strong participation from leaders such as Lula da Silva, Modi, Ramaphosa, Subianto, and others. Russia emphasizes that BRICS is not a rival to the US but rejects any attempts to pressure the group, maintaining that it seeks alternatives to US dominance.
During a speech at the White House on Friday, Trump denounced BRICS’ efforts to weaken the dollar, calling it a ‘conspiracy’ to challenge American economic supremacy. ‘They wanted to try and take over the dollar, the dominance of the dollar… And I said, anybody that’s in the BRICS consortium of nations, we’re going to tariff you 10%,’ Trump said. He went on to emphasize that preserving the dollar’s hegemony was ‘so important’ that losing it would be akin to losing a ‘World War.’
The U.S. President warned that Washington ‘can never let anyone play games,’ and that he has decided to ‘hit them [BRICS] very hard.’ He claimed that if the BRICS group ever formed in a meaningful way, it would ‘end very quickly.’ This warning comes just days after Trump claimed that the BRICS summit in Rio de Janeiro had been derailed by his threats, with ‘nearly nobody showing up,’ as he put it.
However, the BRICS summit proceeded with strong participation from Brazil’s President Lula da Silva, India’s Prime Minister Modi, South Africa’s President Cyril Ramaphosa, Indonesia’s President Prabowo Subianto, and leaders from Egypt, Ethiopia, Iran, and the UAE. While China’s President Xi Jinping was absent, his country was represented by Premier Li Qiang, and Russia’s President Vladimir Putin addressed the summit remotely.
In October, Russia’s Finance Minister Anton Siluanov stated that the share of national currencies in trade among BRICS countries has reached 65%, with the share of the dollar and euro plunging below 30%. Earlier this week, Russian Foreign Minister Sergey Lavrov explained that BRICS countries are exploring dollar alternatives ‘to shield themselves from US arbitrariness.’
Meanwhile, Russian Deputy Foreign Minister Sergey Ryabkov has made it clear that BRICS has never been meant as a rival to the US, although he warned that ‘the language of threats and manipulation… is not the way to speak to members of this group.’ He added that the group will not tolerate any attempts to pressure it, even as it seeks to reduce its dependence on Western financial systems. This tension underscores the growing economic and geopolitical rivalry between the US and its allies, particularly in the context of the ongoing global financial landscape dominated by U.S. monetary policy.
As the BRICS nations continue their efforts to reduce their reliance on the dollar, the U.S. continues to push for its dominance, with Trump’s threats serving as a clear indication of Washington’s stance on the issue. The implications of this rivalry could have far-reaching consequences for global trade and financial systems, as both sides seek to assert their influence in an increasingly interconnected world economy.