Trump threatens BRICS with 10% tariffs again, says ‘dollar is king’

By Admin

09 Jul, 2025

In a bold and controversial move, former U.S. President Donald Trump has reignited tensions with the BRICS bloc by reiterating his threat to impose a 10% tariff on all member nations. Speaking during a Cabinet meeting, Trump accused the expanding coalition of trying to “degenerate” the U.S. dollar in an effort to establish a new global standard. “Anybody that’s in BRICS is getting a 10 per cent charge… and they won’t be a member (for) long,” Trump declared, emphasizing his commitment to defending the dollar, which he calls the "king" of global currencies.

This fiery stance comes amid the 17th BRICS Summit held in Rio de Janeiro, Brazil. The group initially comprising Brazil, Russia, India, China, and South Africa has now expanded to include Egypt, Ethiopia, Iran, the UAE, and Indonesia. Collectively, BRICS represents 45% of the global population and contributes over 35% to the world GDP.

The core of Trump’s concern lies in what he perceives as a direct challenge to the U.S. dollar. Despite Russia’s 2022 proposal for a new BRICS-based reserve currency, a recent report clarified that BRICS is not aiming to replace the U.S. dollar. Rather, it seeks to provide a supplementary alternative to improve market efficiency and foster more inclusive global economic systems.

Still, Trump remains unconvinced. “If we lost the world standard dollar, that would be like losing a war, a major world war,” he warned, adding that challengers to the dollar’s dominance will have to “pay a big price.”

The warning also comes at a time when the U.S. dollar has dropped to a three-year low, declining over 10% against major currencies like the euro and yen. This decline is attributed in part to fears of economic disruption from Trump’s proposed tariffs, which now have an official start date of August 1, 2025. “TARIFFS WILL START BEING PAID ON AUGUST 1, 2025… No extensions will be granted,” Trump asserted via his Truth Social platform.

The situation has raised concern in India, a BRICS member with strong trade ties to both the U.S. and BRICS nations. In October 2024, India’s External Affairs Minister S. Jaishankar emphasized that India does not seek to undermine the dollar. RBI Governor Shaktikanta Das later echoed this, stating that India’s local currency trade agreements are merely risk mitigation measures not de-dollarisation efforts.

India has also distanced itself from the Chinese yuan's growing use, particularly in Russia. While the yuan has become Russia’s top trading currency accounting for over 90% of its trade with China India has refrained from using it, wary of the growing imbalance in economic influence among BRICS nations.

Ajay Sahai, CEO of the Federation of Indian Export Organisations (FIEO), advised that while local currency initiatives are important, India must ensure they do not tilt the scales further in China’s favor.

As the August 1 deadline looms, Trump’s aggressive tariff stance poses a significant challenge to international trade dynamics. His message is clear: the U.S. dollar remains non-negotiable as the global standard, and any challenge to its status will be met with economic retaliation. Whether this strategy will isolate BRICS or push more countries to rally around alternatives remains to be seen but one thing is certain: the global economic chessboard is once again in motion.