U. S. former President Donald Trump has warned that any nations aligning with the BRICS bloc’s efforts to challenge the U. S. dollar will face a 10 % tariff, set to take effect by 1 August unless a deal is struck. Speaking at a Cabinet meeting and in a post on his Truth Social platform, Trump characterised BRICS’ currency ambitions as tantamount to “destroying the dollar,” likening such a loss to the outcome of a major war and pledging not to allow it.
Trump’s latest announcement signals a sharp escalation in trade posture. The threat is conditional: the tariffs would only be activated should countries adopt “anti‑American policies” associated with de‑dollarisation efforts. Earlier, he floated even more drastic measures—100 % tariffs on BRICS nations if they merely “think” about reducing dollar dependence.
The BRICS coalition, now encompassing ten countries including Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, and the UAE, recently issued a joint communique from their summit in Rio de Janeiro calling for reduced reliance on the dollar and reforms in global financial institutions. Brazilian President Luiz Inácio Lula da Silva rebuffed Trump’s posture, clarifying BRICS seeks fairer economic structures rather than confrontation, remarking: “The world has changed. We don’t want an emperor”.
China’s foreign ministry dismissed the tariff threat, stating BRICS promotes “win‑win cooperation” and does not target any country. South Africa’s President Cyril Ramaphosa also urged dialogue with the U. S., warning against coercive economic tactics.
Analysts note Trump’s tariff strategy packs limited immediate punch: officials stress it will only be enforced if BRICS nations explicitly adopt anti‑American measures. Yet the punitive posture serves as a negotiating lever ahead of U. S. trade talks with BRICS members—India and Indonesia among them—prior to the looming 1 August deadline.
Economic commentators warn such antagonistic tactics risk destabilising global markets. Investors initially showed muted reactions, though bond yields edged up on mounting uncertainty. The tension surfaces as BRICS explores alternatives to the U. S. dollar—on‑line payments platforms and bilateral currency swaps already in motion—which are viewed by some economists as early steps toward a multipolar monetary order.
Global economists emphasise that while the dollar’s share of foreign exchange reserves has fallen from over 70 % to near 58 %, it remains dominant, and de‑dollarisation is gradual rather than immediate. A newly issued BRICS currency is not imminent, though cross‑border central bank digital currency trials and blockchain platforms are in advanced development.
The tariff gambit adds complexity to U. S. relations with BRICS members. Alongside India’s ongoing trade negotiations, Indonesia is reportedly preparing a $34 billion pact and increased U. S. wheat imports in parallel with tariff discussions.
Trump asserted preserving the dollar’s reserve status is non‑negotiable, citing its global primacy as foundational to U. S. national security. “If we lost the world standard dollar, that would be like losing a major world war,” he declared.
BRICS countries have interpreted that stance as direct economic pressure. Lula said, “Tariffs should not be used as a tool for coercion and pressuring”. China echoed similar sentiments, warning such tariffs “do not benefit anyone”.
The coming weeks will determine whether Trump seeks to translate these warnings into trade action, or uses them as leverage in broader economic negotiations. With the 1 August window approaching, both Washington and BRICS capitals are bracing for intensified engagement—and the underlying contest over monetary influence shows no signs of subsiding.
