US President Donald Trump on Thursday (Jan 30) warned BRICS nations and threatened them with 100 per cent tariffs on their exports for replacing the US dollar as the reserve currency.

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The US President had made a similar statement right after winning the November 2024 elections.

Trump threatens with 100 per cent tariffs

In a post on Truth Social, Trump wrote, “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER."

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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 US Dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US Economy," the post added.

In a scathing attack, Trump dared BRICS countries to "go find another sucker nation," emphasizing that the US dollar's dominance in international trade is unshakeable. 

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“They can go find another sucker Nation. There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!” he said.

BRICS nations aim to reduce their dependence on US dollar

The BRICS nations (Brazil, Russia, India, China, and South Africa) have long sought to decrease their reliance on the US dollar. Although they don't share a common currency, BRICS countries have been actively promoting trade in their local currencies, aiming to reduce their dependence on the American dollar.

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The call for de-dollarization gained momentum at the 15th BRICS Summit in 2023 and the June 2024 BRICS foreign ministers' meeting in Russia, where member states advocated for using local currencies in bilateral and multilateral trade. 

However, the US dollar's widespread use in international transactions, foreign exchange reserves, and debt issuance continues to cement its position as the global reserve currency. Also, Trump intends to ensure that, even if it means arm-twisting nations by using the threat of crippling tariffs.

(With inputs from agencies)