‘Say goodbye to America, find another s****r’: Trump threatens 100% tariffs on India, BRICS for ditching US dollar

US President Donald Trump on Thursday cautioned BRICS nations against replacing the US dollar as the reserve currency, reiterating a threat of 100% tariffs he had made shortly after winning the November presidential elections.

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"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," Trump said on Truth Social in a statement nearly identical to one he posted on Nov. 30.

At the time, Russia said that any U.S. attempt to compel countries to use the dollar would backfire.

BRICS and de-dolarization

The BRICS grouping includes Brazil, Russia, India, China, and South Africa and a few other countries that joined in the past couple of year. The grouping does not have a common currency, but long-running discussions on the subject have gained some momentum after the West imposed sanctions on Russia over the war in Ukraine.

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"There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!," he said.

Trump issued his warning to the BRICS nations as Canada and Mexico await his decision on whether he will follow through with a pledge to impose 25% tariffs on the U.S.'s North American trading partners, starting February 1.

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Trump intends to use tariffs as leverage to pressure Mexico and Canada into helping curb the flow of illegal drugs, especially the deadly opioid fentanyl, and to address the issue of migrants crossing into the U.S. illegally.

Dollar dominance — the outsized role of the U.S. dollar in the world economy — has strengthened of late, thanks to the robust U.S. economy, tighter monetary policy and heightened geopolitical risks, even as economic fragmentation has boosted a push by BRICS countries to shift away from the dollar into other currencies.

A study by the Atlantic Council's GeoEconomics Center last year showed that the U.S. dollar remains the world's primary reserve currency, and neither the euro nor the so-called BRICS countries have been able to reduce global reliance on the dollar.

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BRICS nations have been working to reduce the dominance of the U.S. dollar in the global financial system by exploring the creation of a new global currency. During the plenary session of the 15th BRICS Summit in 2023, Russian President Vladimir Putin emphasized the need for de-dollarization, urging BRICS countries to increase settlements in their national currencies and strengthen cooperation among their banks.

These efforts gained momentum after the U.S. removed Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a key player in international financial transactions. Similarly, Iran had been cut off from SWIFT in 2012, a move widely viewed as contributing to Tehran’s decision to negotiate in 2015.

(With inputs from agencies)