Washington DC [US], July 19: US President Donald Trump has issued a stern warning to countries aligning with the BRICS economic bloc, announcing plans to impose an additional 10% tariff on their goods. The move, Trump said, is aimed at safeguarding the global dominance of the US dollar.
Speaking at a White House event where he signed new cryptocurrency legislation into law, Trump accused BRICS of attempting to undermine the dollar’s international standing. “We have this little group called BRICS, which is fading out fast,” he remarked. “They wanted to try and take over the dollar, the dominance of the dollar and the standard of the dollar.”
Trump claimed that after his warning, a subsequent BRICS meeting experienced poor attendance. “They didn’t want to be tariffed,” he said, implying his threats had a chilling effect on the bloc’s actions.
BRICS—originally made up of Brazil, Russia, India, China, and South Africa—expanded last year to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates. While the group has discussed the use of local currencies in international trade to reduce reliance on the US dollar, internal positions on “de-dollarisation” remain varied.
India recently clarified its stance, with Ministry of External Affairs spokesperson Randhir Jaiswal stating on July 17: “Cross-border payments, yes, BRICS have talked about local currencies, but de-dollarisation is not something that is there on the agenda.”
The US has set an August 1 deadline for the new tariffs to take effect, following a missed July 9 deadline for trade agreement negotiations. Trump stated that letters detailing specific tariff rates will be sent to countries that do not reach agreements. “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,” he said.
In addition to trade warnings, Trump reiterated his opposition to the idea of a central bank digital currency in the US, saying such a move “won’t happen” under his administration.
This is not Trump’s first confrontation with BRICS over monetary issues. In 2024, he threatened 100% tariffs if the bloc pursued a unified currency to rival the US dollar. The latest comments underscore the administration’s continued use of aggressive trade policy to defend American financial interests on the global stage.