New Delhi:
The BRICS+ nations have chosen to ignore Donald Trump’s threats and go ahead with exactly what it intends on doing – finding an alternative to the US dollar for global trade. President Trump has, on multiple occasions, threatened to impose 100 or even 150 per cent tariffs on BRICS+ nations, should they attempt “de-dollarisation”.
BRICS is short for Brazil, Russia, India, China, and South Africa, and the BRICS+ is a 10-member grouping that includes Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia in addition to the five original members. Saudi Arabia has accepted the membership, but has not formally joined yet, saying that the matter is under consideration.
Donald Trump first made such tariff threats in December and then a few more times in January after his inauguration ceremony. Things lay quiet for a few weeks, and just as President Trump raised his collar last week, claiming his threat had apparently “broken the BRICS+ nations’ unity”, a reality-check came to him like a bolt from the blue.
A REALITY CHECK
Without mincing his words, Brazil’s President Lula da Silva, in a direct response to Donald Trump’s repeated threats, said the “BRICS+ is committed to ending US Dollar dominance no matter what”.
The Brazilian president even said that “Donald Trump’s tariff threats will never stop BRICS’ determination to seek alternative platforms for payments between member countries.”
Brazil, which holds the presidency of the powerful grouping this year, said in a statement that this year’s summit will “strengthen the group’s intent” of forging ahead with its vision for a multi-polar world.
JUST IN: 🇧🇷🇺🇸 Brazil’s President Lula da Silva says BRICS is committed to ending US Dollar dominance no matter what.
“US President Donald Trump’s threats of tariffs won’t stop the group’s determination to seek alternative platforms for payments between member countries.” pic.twitter.com/AGRuRQnKKN
— BRICS News (@BRICSinfo) February 27, 2025
The Brazilian president’s straight-talk comes weeks after Russian President Vladimir Putin said that “Any attempt by the United States of America to compel other countries to compulsorily use the US dollar for trade will backfire in time”.
DONALD TRUMP BOASTS ‘BRICS IS DEAD’
Just last week, Donald Trump indulged in a bit of chest-thumping when he claimed that “The BRICS nations have broken up”, crediting it to his tariff threats.
“BRICS states were trying to destroy our dollar. They wanted to create a new currency. So when I came in, the first thing I said was any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff, and we don’t want your goods and the BRICS states just broke up,” President Trump said.
He went on to boast that “I don’t know what the hell happened to them. We haven’t heard from the BRICS states at all lately.”
Wary of the true potential of an alternative to the US dollar, President Trump said “BRICS was set up for a bad purpose,” adding that “They (BRICS nations) are now afraid to even talk about it (de-dollarisation) because I told them if they want to play games with the dollar, then they’re going to be hit with a 100 per cent tariffs.”
“BRICS is now dead,” President Trump had remarked last week.
WHERE THINGS STAND ON A BRICS+ CURRENCY
The BRICS+ nations do not have a common currency yet, but it is believed that closed-door discussions between some member nations have taken place on a proposal for the same. In 2023, at the BRICS summit held in Russia, President Putin had announced that de-dollarisation was important for a multi-polar world.
“BRICS+ nations must expand settlements in national currencies and enhance cooperation between banks,” President Putin had said at the time. Cooperation between BRICS+ nations has vastly enhanced after sanctions were imposed on Russia by the United States over the war in Ukraine.
While Europe has the Euro, there is no official word on a common global currency by BRICS+ nations to rival the US dollar, several member states have already started trading in local currencies to avoid the use of the US dollar as much as possible. For the time being, and the foreseeable future, the US dollar remains the dominant global currency for trade and for reserves.