On Friday, July 18, President Trump once again warned of imposing tariffs on the BRICS countries. He also warned that if the alliance really forms an economic group, the United States will quickly dismantle it.
During his speech at the White House while signing the cryptocurrency bill “Genius Act,” President Trump stated, “When I heard about the BRICS countries – basically these six countries (meeting), I hit them very, very hard. If they really unite in some way, it will quickly be dismantled.”
However, he did not specifically name which six countries he was referring to.
The BRICS grouping currently includes Brazil, Russia, India, China, South Africa, and has recently expanded to include other countries.
President Trump pointed out in his speech, “BRICS countries” are trying to take over the global dominance of the US dollar and abandon the dollar as the standard currency.
“I say, all those countries sympathetic to ‘BRICS’, we will impose a 10% tariff on them. The next day they had a meeting, but almost no one attended. They don’t want to be taxed,” Trump said.
The BRICS countries held a summit in Brazil on July 6-7, issuing a joint statement against the US tariffs, stating that the move does not comply with the rules of the World Trade Organization (WTO).
Chinese and Russian leaders Xi Jinping and Putin did not personally attend the BRICS summit.
On July 6, Trump posted on the social media platform Truth Social, stating, “Any country aligning with BRICS’ anti-US policies will be subject to an additional 10% tariff. This policy will have no exceptions.”
Trump mentioned this again at the White House on Friday, saying, “They (referring to BRICS countries) have taken action, and if they take action in a certain way, they will quickly be dismantled. I don’t think they will do that. They hardly dare to show up.”
Many countries, including China and Brazil, are currently engaged in trade negotiations with the United States and are cautious about actions that may provoke Trump. Thus, when facing a series of geopolitical and economic challenges from the United States, the BRICS countries have apparently failed to reach a consensus.
BRICS countries are also promoting trade among member countries using their respective local currencies to reduce reliance on the US dollar. Impacted by Western sanctions and tariffs, China and Russia are leading the way in de-dollarization, settling energy trades in rubles and yuan. Meanwhile, India has been using currencies such as the yuan, ruble, and even the UAE dirham to purchase Russian oil since 2023.
BRICS has also considered promoting a common currency, but internal divisions among member countries have stalled the initiative. For example, India is concerned about the dominance of the yuan and has refused to join this plan; Brazil, as the rotating chair country in 2025, hopes to prioritize developing local currency trade rather than a common currency for BRICS countries.
Trump has firmly opposed the news about BRICS promoting a common currency. He stated that if the group takes any measures to weaken the US dollar, a 100% tariff will be imposed on BRICS member countries.
According to data from the BRICS website, of the approximately $33 trillion in global trade in 2024, internal trade among BRICS countries accounted for only 3%, or about $1 trillion. In contrast, 90% of global transactions are settled in dollars, and the dollar holds 59% of the share in foreign exchange reserves.
Economists believe that de-dollarization is still a distant dream, and any alternative proposed by a BRICS group will face realistic obstacles such as yuan capital controls, ruble fluctuations, and some member countries unwilling to abandon the dollar.
In addition to his comments on BRICS countries, Trump also emphasized his commitment to maintaining the US dollar’s dominant status as the global reserve currency in trade and finance. He stated that he will prevent the creation of a central bank digital currency (CBDC) for the United States.