Trump Demands BRICS Nations Reject New Currency Or Face Trade Penalties

President Donald Trump has reinforced his position against efforts by BRICS nations to move away from the U.S. dollar, warning that any attempt to introduce an alternative reserve currency would be met with severe economic consequences.

In a Truth Social post on Thursday, Trump stated that the U.S. would demand a commitment from BRICS members that they will not support or create a currency meant to challenge the dollar. “We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs,” he wrote.

BRICS, originally founded by Brazil, Russia, India, and China in 2009, expanded when South Africa joined in 2010. More recently, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia have become members. While BRICS does not currently have a shared currency, discussions about reducing reliance on the dollar have grown, particularly after Russia was hit with sanctions following its invasion of Ukraine.

Trump first made a similar warning in November after winning the presidential election. At the time, Russia dismissed the idea that the U.S. could dictate global financial decisions, arguing that economic pressure would only push more nations toward alternative currencies.

The former president also linked his trade stance on BRICS to his broader economic agenda, which includes a proposed 25% tariff on imports from Mexico and Canada starting Feb. 1. He has said this measure is aimed at stopping illegal immigration and the flow of fentanyl into the U.S.

Despite BRICS members considering ways to increase trade using their own currencies, the U.S. dollar remains dominant. The Atlantic Council’s GeoEconomics Center has reported that no major alternative has successfully reduced global reliance on the dollar.

South Africa’s Department of International Relations and Cooperation addressed the matter, saying that while BRICS supports expanding the use of national currencies in trade, there is no plan to introduce a single BRICS-backed currency. The group’s focus, according to South African officials, is on improving financial systems that allow for transactions in local currencies.

The BRICS alliance continues to grow, with Indonesia becoming its latest full member in January. While some leaders within the group have floated the idea of a gold-backed currency, no formal steps have been taken to create one.