The comments come amid increasing speculation that the BRICS bloc, recently expanded to include Egypt, Ethiopia, Iran and the UAE, is exploring mechanisms to settle trade in local currencies or gold-backed instruments, a move that could reduce reliance on the dollar.
In a fiery address at the White House, US President Donald Trump lashed out at the BRICS economic bloc, comprising Brazil, Russia, India, China, and South Africa – accusing it of attempting to “take over the dollar” and undermine its dominance as the world’s reserve currency. “You have this little group called BRICS… they wanted to try and take over the dollar, the dominance of the dollar,” Trump said on Friday during the signing of the GENIUS Act, a landmark legislation regulating stablecoin cryptocurrencies.
The President warned that a 10 per cent tariff would be imposed on any BRICS nation actively working to bypass the dollar in international trade. “Anybody that’s in the BRICS consortium of nations, we’re going to tariff you 10 per cent,” Trump declared, describing the dollar’s fall as tantamount to “losing a world war”. “If we have a smart president, you’re never going to let the dollar slide,” Trump said. “If you have a dummy, that could happen.”
The comments come amid increasing speculation that the BRICS bloc, recently expanded to include Egypt, Ethiopia, Iran and the UAE, is exploring mechanisms to settle trade in local currencies or gold-backed instruments, a move that could reduce reliance on the dollar. However, no verifiable evidence has surfaced confirming that BRICS aims to dismantle dollar hegemony, despite growing rhetorical opposition to Western-dominated financial systems.
Stablecoin Pivot and the GENIUS Act
The criticism of BRICS was delivered as Trump signed the GENIUS Act, the first comprehensive US law establishing a regulatory framework for stablecoins — digital assets pegged to traditional currencies like the US dollar. The legislation mandates strict reserve requirements, third-party audits, and anti-money laundering compliance for all licensed issuers.
Crypto commentators have noted that Trump’s newfound legislative zeal coincides with the launch of his family-owned stablecoin project, USD1, operated by World Liberty Financial. In March, the token was used in a $2 billion transaction involving Abu Dhabi-based investor MGX and crypto exchange Binance, raising ethical concerns regarding potential conflicts of interest. Bloomberg journalists Emily Nicolle and Olga Kharif report: “The GENIUS Act faced fierce debate in the Senate over whether it goes far enough in combating the conflicts of interest that the president’s USD1 might pose.”
Despite concerns, the crypto industry has largely welcomed the bill, seeing it as a step toward integrating stablecoins into mainstream finance. The GENIUS Act also aligns with regulatory efforts in the European Union, Hong Kong, and Singapore, which have already begun implementing stablecoin frameworks.
India’s Trade Crossroads
Trump’s remarks also arrive at a critical juncture in India–US trade talks. On July 17, India concluded the fifth round of negotiations in Washington for a bilateral trade agreement (BTA), led by chief negotiator Rajesh Agrawal. The clock is ticking: Trump-era tariffs of up to 26 per cent on Indian exports are set to resume on August 1 if no interim deal is reached.
While India is a BRICS member, it has pursued deeper trade ties with the US, potentially complicating its geopolitical alignment. Trump’s tariff threats may pressure India to distance itself from BRICS’ monetary ambitions — or at least tread more cautiously on de-dollarisation discussions.
BRICS on the Defensive
The 17th BRICS Summit, held in Rio de Janeiro on July 6–7, indirectly criticised unilateral US tariffs but did not announce any definitive plan to replace the dollar. Trump, however, dismissed the summit, saying: “They held a meeting, but almost nobody showed up because they didn’t want to be tariffed… It’s amazing.”
The escalation marks Trump’s second BRICS-related tariff warning in 10 days, underscoring his campaign focus on protecting the dollar and reshaping the global financial order on America’s terms.
As the US gears up for elections, Trump’s hawkish stance on currency and crypto is expected to remain central to his economic agenda. Whether it galvanises allies or isolates trading partners like India, remains to be seen.
