Trump’s Warning to BRICS Members–Including India–Against Pursuing Alternatives to US Dollar
Support the U.S. Dollar or “Go Find Another Sucker,” Trump Says
December 2, 2024
U.S. President-elect Donald Trump has warned BRICS members, including India, against pursuing alternatives to the U.S. dollar, threatening economic retaliation and saying that any efforts to create or support a BRICS currency could lead to severe trade penalties.
In a post on his Truth Social platform, Trump addressed the BRICS countries—Brazil, Russia, India, China and South Africa—declaring, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER.”
The warning comes as Trump prepares to re-enter the White House, calling for the group to abandon any moves towards creating a currency that could replace the dollar. According to Business Today, Trump indicated that countries attempting such a move would face 100% tariffs and a loss of access to the U.S. economy.
According to the Hindustan Times, Trump further stated that the BRICS countries “can go find another sucker” if they cannot commit to supporting the U.S. dollar as the primary global currency.
Formed in 2009, BRICS is an intergovernmental organisation that also includes Iran, Egypt, Ethiopia and the United Arab Emirates. The BRICS nations have been exploring alternatives to reduce reliance on the U.S. dollar, which has intensified since U.S.-led sanctions against Russia in 2022.
The discussion around de-dollarisation was a significant topic at the BRICS summit in Johannesburg in 2023, with countries like Russia and China leading the call for reducing dollar dependence, though India has remained less vocal about such moves.
Trump, who has consistently positioned himself against de-dollarisation efforts, said in March “I would not allow countries to go off the dollar because it would be a hit to our country.” On Nov. 30, he reaffirmed his position.
Trump’s economic advisers have reportedly made strategies to counter de-dollarisation efforts, including export controls and trade restrictions aimed at preserving the status of the U.S. dollar as the world’s primary reserve currency.
BRICS remains the only major international group that does not include the United States, and efforts to explore alternative currencies could signify a shift in international economic alignments.
The dollar’s status as the primary global reserve currency provides substantial economic benefits, as it creates a constant demand for the currency, which helps to stabilise its value. The demand also allows the United States to borrow money at lower interest rates, making it cheaper for its government to fund public projects and manage national debt.
Moreover, having the dollar as the dominant currency in global trade gives the United States considerable influence over the international financial system. It enables the U.S. to impose economic sanctions effectively, as seen in the case of Russia in 2022. When other countries use the dollar, the U.S. can track transactions and enforce its sanctions more efficiently.
A weaker dollar could make imports more expensive for Americans, leading to inflationary pressures.
