Trump Threatens 10% Tariffs on BRICS Nations Over Dollar Dominance

Washington, D.C. – U.S. President Donald Trump has reignited tensions with the BRICS economic alliance, warning that countries aligning with the bloc could face an additional 10% tariff on their exports to the United States. The move, according to Trump, aims to defend the global dominance of the U.S. dollar, which he claims is under threat from the growing influence of BRICS.

Speaking during a White House ceremony on Friday—where he also signed new cryptocurrency legislation—Trump accused BRICS of attempting to “take over” the dollar.

“We have this little group called BRICS, which is fading out fast,” Trump said. “They wanted to try and take over the dollar, the dominance of the dollar and the standard of the dollar. That’s not going to happen.”

Tariff Threats and Global Reactions

Trump said that his warning had already impacted BRICS operations, claiming that a recent BRICS meeting saw low participation due to fear of impending U.S. trade penalties.

“They didn’t want to be tariffed,” he stated. “I hit them very, very hard, and it will end very quickly. I don’t think they’ll do it. They’re virtually afraid to meet.”

The former BRICS group—made up of Brazil, Russia, India, China, and South Africa—expanded in 2024 to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE. The alliance has been exploring alternatives to the U.S. dollar in cross-border trade, though opinions vary among members about pursuing full-scale “de-dollarisation.”

India Pushes Back on ‘De-Dollarisation’ Narrative

India, a key BRICS member, has moved to clarify its stance. On July 17, the Ministry of External Affairs rejected claims that BRICS is pushing for de-dollarisation.

“Cross-border payments, yes, BRICS has talked about local currencies,” said MEA spokesperson Randhir Jaiswal. “But de-dollarisation is not something that is there on the agenda.”

This clarification reflects India’s careful diplomatic positioning as it navigates its role in BRICS while maintaining strong economic ties with the United States.

Deadline for Tariffs Approaching

The Trump administration has set an August 1 deadline for the new tariffs to take effect. This follows a missed July 9 deadline for countries to reach updated trade agreements with the U.S. If no new deals are finalized, Trump has said he will send formal notices detailing the tariffs to each country involved.

Crypto, Currency, and U.S. Policy

In addition to his remarks on BRICS, Trump also reiterated his firm opposition to a central bank digital currency (CBDC) in the U.S.

“It won’t happen under my administration,” he said, doubling down on his stance amid ongoing debate over digital dollar frameworks.

A Continuation of Trump’s Economic Strategy

This isn’t the first time Trump has targeted BRICS over monetary issues. In 2024, he warned of a potential 100% tariff if the group pursued plans to create a shared currency to rival the dollar. His current rhetoric suggests that his administration will continue using trade pressure as a strategic tool in global economic diplomacy.