The BRICS intergovernmental organization, comprising India, Russia, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, is at the center of renewed tensions with the United States. On January 21, 2025, President Donald Trump announced a warning against the BRICS nations regarding their discussions on potentially replacing the US dollar in global trade.
Trump stated that if BRICS countries proceed with plans to diminish the dollar's role, they could face a 100 percent tariff on their business dealings with the United States. He emphasized that any consideration of a new BRICS currency or backing for alternative currencies would trigger severe economic repercussions.
In a previous statement from December, Trump had issued a similar warning, insisting on a commitment from BRICS nations to maintain the dominance of the US dollar in international trade. India’s External Affairs Minister S. Jaishankar reiterated that India does not support de-dollarization and that there are no current proposals for a BRICS currency.
As the situation develops, global observers will be watching closely for any official responses from BRICS nations and the potential implications for international trade dynamics. The focus will be on how this conflict may affect economic relationships and trade policies moving forward.