U.S. President Donald Trump has reiterated his threats to BRICS Nations as they continue their de-dollarization efforts.
However, experts warn that such tensions could accelerate de-dollarization, further weakening the dollar’s global dominance.
U.S. President Donald Trump reiterated his warning to BRICS Nations on Jan. 20, threatening 100% tariffs on trade with the U.S., if they continue their de-dollarization efforts.
At a signing ceremony in the Oval Office, Trump declared, “As BRICS Nations, they’ll face a 100% tariff, if they even think about moving forward with their plans.”
Trump insisted his remarks were not a threat but a clear stance, emphasizing that the U.S. holds leverage over BRICS countries. He dismissed former President Joe Biden’s comments suggesting U.S. vulnerability, asserting that the BRICS Nations would be unable to proceed.
The BRICS bloc has been working to reduce dollar reliance, with Russian President Vladimir Putin advocating for de-dollarization and increased use of national currencies during the 2023 BRICS Summit.
Vladimir Dzhabarov, deputy head of the Federation Council’s International Affairs Committee, said it will be difficult for U.S. President Donald Trump to follow through on his threats of imposing tariffs on BRICS Nations.
“I think Trump is a flamboyant and impulsive person. It’s not certain he’ll follow through on these claims. Sometimes, he confuses what he wants with what can realistically be achieved,” Dzhabarov explained , adding:
“The distance between his words and their execution is enormous, and I’m not convinced he’ll see it through.”
The senator pointed out that BRICS includes India and China—two of the U.S.’s largest trading partners—in addition to Russia. He noted that Trump’ statements could hinder Chinese business interests but added that once the “inauguration hype” dies down, normal contracts and negotiations will resume.
“We need to wait and see. I don’t believe BRICS will collapse just because the U.S. imposes tariffs. Everyone understands the American agenda: Global dominance. This is precisely what BRICS seeks to move away from,” Dzhabarov said.
“The U.S. is pushing for a unipolar world order, while BRICS advocates for a multipolar structure. That’s why I believe Trump’s promise will be difficult to implement,” he concluded.
Donald Trump’s victory in the U.S. presidential election opens new opportunities for de-dollarization, according to ISPI’s experts Luca Fantacci and Lucio Gobbi.
“During his campaign, Trump threatened countries considering abandoning the dollar, vowing to impose 100% tariffs on their exports,” they said. “The dollar, once a global public good, is increasingly being used as a tool of coercion. Its global dominance stemmed from its gold convertibility at Bretton Woods in 1944, and its widespread availability through the Marshall Plan.”
However, rising U.S. sanctions and Trump’s tariff threats risk turning the dollar from a voluntary choice into an imposition, contrary to the BRICS Nations’ vision for a new monetary system.
“This shift from soft power to hard power reflects U.S. weakness rather than strength, further undermining dollar hegemony,” ISPI experts continued, adding, “The more the dollar is used as a tool of coercion, the more de-dollarization becomes a strategic necessity for other nations. Moving away from the dollar is crucial for preserving sovereignty.”
“If the U.S. escalates the trade war against China, China could retaliate by accelerating the sale of U.S. Treasury bonds and other dollar-denominated assets. Ironically, the U.S. push to defend the dollar could speed up its decline,” the experts opined.