Trump threatens 10% tariff on BRICS nations over dollar challenge, warns against ‘takeover’ of US currency

Friday’s remarks show a continuation of that strategy, linking monetary dominance with aggressive economic enforcement.

At a White House event on Friday, US President Donald Trump issued a sharp warning to countries aligned with the BRICS economic bloc, threatening to impose an additional 10 percent tariff on their exports if they continue efforts to reduce reliance on the US dollar.

“They wanted to try and take over the dollar,” Trump said. “We’re not going to let that happen.”

Trump’s comments came during a signing ceremony for new cryptocurrency legislation. While the law focused on regulating digital assets, the president used the opportunity to send a clear message to emerging economies: challenging the dollar’s dominance will come at a price.

“They’re virtually afraid to meet”: Trump on BRICS response

The BRICS alliance, originally formed by Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE. The bloc has held discussions around using local currencies in trade settlements to reduce dependency on the US dollar.

But Trump claims his aggressive trade stance has already had an impact.

“After I issued the warning, their next meeting had very poor attendance,” he said. “They didn’t want to be tariffed.”

He doubled down on his approach, warning that if no trade deals are reached by August 1, he would begin sending official letters to BRICS nations detailing the new tariff regime.

India pushes back: ‘De-dollarisation not on the agenda’

India, a founding BRICS member, moved quickly to distance itself from the “de-dollarisation” narrative. On July 17, the Ministry of External Affairs clarified that the group is not actively trying to undermine the US dollar.

“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 measured response reflects how member nations often have differing views on the pace and scope of any alternative currency push within BRICS.

A history of currency warnings and trade threats

This is not the first time Trump has used trade policy to defend the dollar’s status. In 2024, he warned of 100% tariffs if BRICS proceeded with plans to create a joint currency to rival the greenback.

Friday’s remarks show a continuation of that strategy, linking monetary dominance with aggressive economic enforcement.

“I hit them very, very hard, and it will end very quickly,” Trump said. “I don’t think they’ll do it. They’re virtually afraid to meet.”

No to CBDC: Trump reiterates opposition to digital dollar

The president also repeated his firm opposition to a central bank digital currency (CBDC) in the United States, saying such a move “won’t happen” under his leadership. He has previously claimed that a digital dollar could erode individual financial freedoms.