On Friday, US President Donald Trump reiterated his warning to countries aligned with the BRICS economic bloc, stating their goods could face an additional 10% tariff if they challenge the dominance of the US dollar. This warning came during a White House event where he signed new cryptocurrency legislation into law.
Claims of Diminishing Influence
Speaking on the matter, Trump accused the BRICS grouping of attempting to undermine the dollar’s global role. “We have this little group called BRICS, which is fading out fast,” he said. “BRICS wanted to try and take over the dollar, the dominance of the dollar and the standard of the dollar.”
Trump further claimed that attendance at a recent BRICS meeting dropped following his warning about tariffs. “They didn’t want to be tariffed,” he remarked, adding, “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,” as reported by the ANI news agency.
Expanding BRICS Coalition
Originally comprised of Brazil, Russia, India, China, and South Africa, the BRICS alliance has expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE. While the bloc has discussed promoting local currencies in trade, members have differing views on reducing dependence on the US dollar.
India recently clarified its stance, with Randhir Jaiswal, spokesperson for the Ministry of External Affairs, stating, “Cross-border payments, yes, BRICS has talked about local currencies, but de-dollarisation is not something that is there on the agenda.”
Upcoming Tariff Deadlines
The US has set August 1 as the deadline for implementing new tariff measures, following a previous cut-off date of July 9 for finalizing trade agreements. Trump emphasized that countries will be formally notified about tariff rates if no deals are reached.
This incident marks the second time Trump has issued such a warning. In 2024, he threatened 100% tariffs if BRICS nations pursued plans to introduce a rival currency. His latest remarks reflect his administration’s ongoing aggressive trade policies aimed at defending US financial interests.
Tariff Warning Amid Growing Tensions
Earlier this month, Trump indicated that a 10% trade tariff would apply to countries supporting what he termed the “anti-American policies of BRICS,” following the bloc’s criticism of recent US military actions in Iran.
In a post on his social media platform, Truth Social, Trump declared that the new tariff policy would apply without exceptions: “There will be no exceptions.”
The warning was issued shortly after BRICS adopted a joint declaration condemning “unilateral” tariffs and criticizing US military strikes on Iran. The declaration also raised concerns about the worsening humanitarian crisis in Gaza, urging Israel to withdraw its forces from Gaza and other “Occupied Palestinian Territory.”
