Trump Threatens Tariffs on BRICS Nations Over ‘Anti-American’ Alignment, India Clarifies Stance on Dollar Use
In a sharp escalation of tensions with the expanding BRICS bloc, former US President Donald Trump has issued a warning that any country aligning with what he termed the “anti-American policies” of BRICS would face an additional 10% tariff. In a post on social media, Trump further threatened a 100% tariff on BRICS members “if they so much as even think” about reducing reliance on the US dollar in global trade.
The BRICS group, initially comprising Brazil, Russia, India, China, and South Africa, has grown significantly in recent months. At the Kazan Summit in Russia in October 2024, the group welcomed Egypt, Ethiopia, Iran, and the UAE as new members. Indonesia joined in January 2025, bringing the total membership to ten. Together, BRICS now represents 45% of the global population and contributes over 35% of the world’s GDP.
The latest friction comes amid a broader global shift. In recent years, nations have increasingly moved to diversify their financial systems following the US-led exclusions of Iran in 2012 and Russia in 2022 from the SWIFT payment network. Russia and China have since expanded the use of their own currencies in trade.
In June 2022, Russia proposed a new international reserve currency backed by a basket of BRICS currencies. However, a BRICS report clarified that the grouping does not aim to replace the US dollar, but to offer “a viable alternative” that supports market efficiency and inclusive economic growth.
Trump’s comments coincide with the US dollar sliding to a three-year low, down more than 10% against key global currencies amid fears that his proposed tariffs could further destabilize the US economy.
Meanwhile, India has clarified its position amid rising scrutiny. External Affairs Minister S. Jaishankar, during an interaction at the Carnegie Endowment for International Peace in Washington DC, emphasized that India does not seek to undermine the dollar.
“We have never actively targeted the dollar. That’s not part of our economic, political, or strategic policy,” Jaishankar stated. “However, we do face situations where our trade partners lack access to dollars. In such cases, we look for practical alternatives. There’s no malicious intent involved.”
India’s stance reflects a pragmatic approach—balancing its trade interests while maintaining strategic autonomy in global financial dealings.
