Trump Claims 150% Tariffs Scuttled BRICS' Dollar Rival

Former U.S. President Donald Trump recently claimed that his administration's threat of 150% tariffs on BRICS nations had led to the abandonment of their plans to create an alternative to the U.S. dollar. Trump made these statements during a speech at the Republican Governors Association meeting on February 21, 2025.

The BRICS group, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia, has been exploring options to reduce their reliance on the U.S. dollar in international trade. During his address, Trump described his response to BRICS' currency plans. "Any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff, and we don’t want your goods, we don’t want to partake," Trump stated at the meeting.

The former president's initial warning included a 100% tariff threat on imports from BRICS nations if they attempted to establish a new currency or move away from the dollar. This warning was later increased to 150%. Trump contrasted his approach with that of former President Joe Biden, stating that Biden viewed the BRICS currency issue as a challenging situation with limited options for response. Trump emphasized that his administration had developed a firm strategy to counter any threats to the dollar's status as the global reserve currency.

The BRICS alliance, formed in 2009, represents the only major international organization without U.S. membership. Over the years, member nations have explored various options for reducing their dependence on the U.S. dollar as a primary medium of exchange. Trump claimed the results of his policy were clear, stating, "We haven’t heard from the BRICS states lately." He described the outcome as "an amazing turnaround" and declared that BRICS had "broken up," though this claim remains unverified.

The response from BRICS nations to Trump's tariff threats has not been unified. While some members continue to explore local currency trade mechanisms, others maintain support for the concept of a unified currency, citing their national interests. Iran, as a BRICS member, continues to express support for the idea of a unified currency alternative, indicating ongoing interest in financial alternatives despite the tariff threats.

The exploration of alternative currency arrangements by BRICS reflects broader discussions about international trade settlement options. Member nations have been investigating various mechanisms for conducting