Trump's big warning to India, Brics nations on Day 1 as US President

On his first day in office, President Donald Trump issued a stern warning to BRICS nations, reiterating that any country pursuing de-dollarisation would face a 100 per cent tariff on trade with the United States. The statement was made during a press conference in the Oval Office on Monday, shortly after Trump was sworn in as the 47th President of the United States.

Trump’s remarks were in response to ongoing efforts by some BRICS members — including Russia and China — to reduce the dominance of the US dollar in global trade. Trump said, “As a BRICS nation… they’ll have a 100 per cent tariff if they even think about doing what they thought. They’ll give it up immediately.”

Reduce dollar dominance

The BRICS group, which includes Brazil, Russia, India, China, South Africa, and newer members like Iran, Egypt, Ethiopia, and the UAE, has been exploring alternatives to the dollar. Russian President Vladimir Putin called for de-dollarisation during the 2023 BRICS Summit, advocating for the use of local currencies in trade and enhanced cooperation between member banks.

In June 2024, BRICS Foreign Ministers met in Russia to discuss these efforts further, urging greater use of national currencies in financial transactions. However, India’s Reserve Bank Governor, Shaktikanta Das, clarified that India is not pursuing de-dollarisation but rather focusing on minimising risks from geopolitical changes.

Clear stance, not a threat

While Trump denied that his comments were a threat, he made it clear that the US would leverage its economic power to counter any move away from the dollar. Referring to former President Joe Biden’s earlier concerns about the US’s vulnerability in this matter, Trump asserted, “No, we have them over a barrel. There’s no way they’re going to be able to do that.”