U.S. President Warns Emerging Economies Against Undermining Dollar Dominance; India Distances Itself From ‘De-dollarisation’ Agenda
In a bold declaration during a White House event on Friday, U.S. President Donald Trump issued a stark warning to BRICS nations, threatening to impose a 10% tariff on exports from member countries if they continue efforts to reduce reliance on the U.S. dollar.
Speaking at a signing ceremony for new cryptocurrency legislation, Trump veered into global economics, accusing the BRICS bloc of attempting to “take over the dollar.” He was unequivocal in his stance:
“We’re not going to let that happen.”
BRICS in the Crosshairs
BRICS—an economic coalition originally made up of Brazil, Russia, India, China, and South Africa—has recently expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE. While the group has discussed using local currencies in trade to cut dependence on the dollar, Trump claims his tough approach is already having a chilling effect.
“They’re virtually afraid to meet,” he remarked, pointing to what he described as low attendance at a recent BRICS summit. “After I issued the warning, their next meeting had very poor attendance. They didn’t want to be tariffed.”
The president went further, saying that if no trade negotiations are underway by August 1, he will start sending official notices to BRICS nations detailing the new 10% tariff plan.
India Responds: ‘Not About De-dollarisation’
India was quick to respond to Trump’s fiery remarks. On July 17, the Ministry of External Affairs clarified that the idea of “de-dollarisation” is not on the BRICS agenda.
MEA spokesperson Randhir Jaiswal stated:
“Yes, BRICS has discussed local currencies for cross-border payments. But de-dollarisation is not something that is there on the agenda.”
This response highlights the complex dynamics within the bloc. While some BRICS members push for alternatives to the dollar, others—like India—advocate a more cautious approach.
A History of Warnings
This isn’t the first time Trump has drawn a red line around the dollar’s global role. Back in 2024, he warned BRICS against creating a joint currency, even threatening 100% tariffs in response.
Friday’s remarks reinforce a consistent Trump message: U.S. monetary dominance is non-negotiable—and economic penalties will follow any challenge.
“I hit them very, very hard, and it will end very quickly,” Trump said confidently.
Firm Stand Against Digital Dollar
Alongside his warnings to BRICS, Trump also took the opportunity to reiterate his opposition to the creation of a central bank digital currency (CBDC) in the U.S.
“It won’t happen under my leadership,” he declared, warning that a digital dollar could threaten personal financial freedoms.
Conclusion
President Trump’s aggressive tone signals continued tension between the U.S. and emerging economies over the future of global finance. As BRICS explores alternatives to the dollar, Washington’s message is clear: the road away from greenback dominance comes at a cost.
Stay tuned as this geopolitical tug-of-war unfolds in the months ahead.