President-elect Donald Trump issued a stark warning to China and its BRICS allies on Saturday, cautioning against attempts to replace the U.S. dollar as the global reserve currency. His remarks, shared via Truth Social, included threats of economic retaliation through heavy tariffs on nations pursuing a shared currency to rival the dollar.
“The idea that BRICS countries are trying to move away from the dollar while we stand by is over,” Trump wrote. He added that any country attempting to undermine the dollar should “wave goodbye to America.”
The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—recently expanded to include nations like Saudi Arabia and the UAE, with plans to introduce a shared currency backed by gold and local currencies. Trump’s comments highlight growing concerns about a potential economic shift away from Western dominance.
China’s Influence on BRICS and U.S. Trade Policies
Analysts have pointed to China’s dominant role within BRICS, fueling tensions with the U.S. Beijing’s push for rapid expansion of the bloc contrasts with India’s preference for gradual integration. Despite internal disagreements, China’s vision prevailed, bringing in new members such as Iran, Ethiopia, and Egypt.
The proposed shared currency, tentatively named “The Unit,” is seen as a direct challenge to the dollar’s supremacy. Trump’s warning underlines the potential economic impact of such a move, particularly for Western trade systems.
The inclusion of Iran further complicates the geopolitical landscape, reflecting a growing alliance between Tehran, Moscow, and Beijing. The bloc’s strategy to circumvent U.S.-led sanctions by increasing trade among member nations has drawn criticism from Western leaders.
Trump’s administration plans to counter these developments through aggressive trade policies, including universal tariffs. His proposed 25% tariffs on imports from Canada and Mexico, ostensibly to combat fentanyl production, have already sparked diplomatic tensions with key allies.
The Rising Tide Against Western Dominance
While Trump’s threats may deter some BRICS nations, experts suggest the bloc’s appeal to the global south remains strong. Fyodor Lukyanov, a Russian foreign policy expert, noted that BRICS offers an alternative to the U.S.-EU-led financial systems, making it attractive to nations seeking diversified economic ties.
However, internal fractures within the bloc could limit its effectiveness. Argentina, for example, withdrew from joining after the election of libertarian President Javier Milei. Analysts also question whether smaller BRICS nations prioritize challenging the dollar over addressing domestic economic issues.
Netizens React to Trump’s Warning
Social media exploded with reactions to Trump’s remarks, revealing a mix of support and skepticism:
- @GlobalTradeWatch: “Trump’s tariffs will backfire. BRICS nations are prepared to fight back.”
- @MAGAforLife: “BRICS won’t replace the mighty dollar. Trump is 100% right!”
- @DiplomacyFirst: “A currency war with BRICS? This will only harm American businesses.”
- @TradeTruths: “Trump talks tough, but does he have a real plan to counter BRICS’ growing influence?”
- @EconObserver: “China’s economic dominance is the real threat—not the dollar debate.”
- @FairTradeFan: “The global economy can’t afford another tariff war. Trump needs a better strategy.”