On December 1, 2024, Donald Trump, the elected President of the United States, issued a stern warning to BRICS nations, including Brazil, against attempts to replace the U.S. dollar in international trade. Trump stated that countries engaging in such actions could face punitive import tariffs of 100% on their products.
Trump emphasized that the notion of BRICS nations distancing themselves from the dollar is over, demanding commitments from these countries not to create a new BRICS currency or support alternatives that would undermine the U.S. dollar. He warned, 'They can look for another 'sucker.' There is no chance of BRICS replacing the U.S. dollar in international trade.'
This warning comes shortly after the recent BRICS summit held in Kazan, Russia, where leaders discussed reducing dollar dependency and strengthening their own currencies. Brazilian President Luiz Inácio Lula da Silva advocated for the development of alternative payment systems among BRICS nations, emphasizing the need for progress without further delay.
As Brazil prepares to assume the BRICS presidency on January 1, 2025, discussions on alternatives to the dollar are expected to intensify, alongside the expansion of the BRICS bank, currently led by former President Dilma Rousseff.
Russia, another BRICS member, has also faced international sanctions following its invasion of Ukraine, which has prompted discussions on reducing reliance on the dollar. At the Kazan summit, President Vladimir Putin criticized U.S. policies, claiming that the U.S. uses the dollar as a weapon and called for enhanced banking cooperation within BRICS to facilitate transactions in local currencies.