President Donald Trump has threatened BRICS countries, warning them against replacing the U.S. dollar as a reserve currency and telling them, “Go find another sucker nation.”
Newsweek has contacted the White House and the foreign ministries of major BRICS members Brazil, Russia, India, China and South Africa for comment via email.
Why It Matters
BRICS countries’ continued use of the dollar plays a major role in it being the world’s reserve currency and widely used for international trade. If the bloc decides to step away from the dollar, it could decrease the U.S.’s financial dominance.
Trump’s “America First” approach to trade and foreign policy has included tariff threats to several economic partners, namely Canada and Mexico but also BRICS member China.
What To Know
On Thursday, Trump wrote on Truth Social: “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER.
“We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.
“They can go find another sucker Nation. There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!”
The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) January 31, 2025
In November, Trump posted an almost identical message: “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER.
“We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.
“They can go find another ‘sucker!’ There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
AP
What Is BRICS
Brazil, Russia, India and China formed the BRIC trading bloc in 2009. One year later, South Africa joined, and the group adopted the name BRICS.
In 2023, the members voted to greatly expand membership, and Iran, Ethiopia, Egypt and the United Arab Emirates accepted invitations and joined the following year, as the bloc looks to effectively disrupt the global strength of the dollar.
Argentina received an invitation, but after the shock victory of libertarian candidate Javier Milei, the nation’s new government withdrew from the ascension process.
In January, Indonesia became the bloc’s 10th full member. The nation’s inclusion brings a substantial boost to the bloc, which accounts for almost 45 percent of the world’s population and 35 percent of global gross domestic product, measured by purchasing power parity.
There has been talk of the bloc shifting to a shared currency called the Unit, which would be backed 40 percent by gold and 60 percent by local currencies of BRICS members.
What People Are Saying
Liu Pengyu, a spokesperson of the Chinese Embassy in the U.S., previously told Newsweek: “The U.S. has long used its dollar hegemony to shift crises, spread U.S. inflation to other parts of the world, and made it become a geopolitical tool, which damages international economic and financial stability, and disrupts international order.”
Dmitry Peskov, a Kremlin spokesperson, said in December: “More and more countries are switching to the use of national currencies in their trade and foreign economic activities … If the U.S. uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies [in international trade].”
What Happens Next
Despite the bloc’s talk of moving away from the dollar, the currency’s dominance has strengthened recently, thanks to a strong U.S. economy, Reuters reported. So it remains to be seen whether the BRICS countries will try to move away from the dollar and how Trump would respond to such a move.
