US President Donald Trump has announced a renewed threat of additional 10% tariffs on goods from countries associated with the BRICS economic bloc, explicitly linking this move to efforts by the group to reduce reliance on the US dollar in global trade.

Speaking during a White House event where he signed new cryptocurrency legislation, Trump accused BRICS of attempting to undermine the global dominance of the US dollar.

He stated, “BRICS, they wanted to try and take over the dollar, the dominance of the dollar and the standard of the dollar. We’re not going to let that happen.” Trump maintained that any country in BRICS would face a 10% tariff “just for that one thing”.

Trump declared that his aggressive trade posture was already yielding results, claiming that after his warning, attendance at a subsequent BRICS meeting dropped, asserting, “They didn't want to be tariffed. I hit them very, very hard, and it will end very quickly. I don’t think they’ll do it. They’re virtually afraid to meet”.

The president set an August 1 deadline for these tariffs to go into effect should no new trade agreements be reached. He also outlined a process of sending formal letters to the affected countries, detailing the details of the new tariff regime.

BRICS, comprising Brazil, Russia, India, China, and South Africa, expanded last year to add Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates. The bloc has openly discussed increasing the use of local currencies in cross-border payments to reduce dependence on the dollar, but member states have not reached consensus on a full “de-dollarisation” agenda.

India, for instance, clarified on July 17 via its foreign ministry that “de-dollarisation is not something that is there on the agenda. Cross-border payments, yes, BRICS have talked about local currencies, but de-dollarisation is not something that is there on the agenda,” according to spokesperson Randhir Jaiswal.

This is the second major warning from Trump, following a 2024 episode where he threatened even more severe (100%) tariffs if BRICS members pushed forward with plans for a new currency to rival the US dollar’s global reserve status.

Trump’s rhetoric is framed around defending what he refers to as the “world standard” of the dollar, warning that any erosion of the dollar’s dominant position would be akin to “losing a major world war” for the United States. The administration continues to use trade policy as a strategic lever, with tariffs being wielded to reinforce US economic and financial primacy.

In addition, Trump has reaffirmed his opposition to a central bank digital currency in the US, pledging that “it won’t happen” under his administration. Meanwhile, other BRICS nations have responded with caution or assert that discussions are focused more narrowly on local currency arrangements than on open moves against dollar hegemony.

Trump’s rhetoric and threats mark a significant escalation in geopolitical economic pressure, underscoring a broader strategy of using tariffs and trade policy to confront any perceived threats to core US financial interests—specifically, the dollar’s global role.

Based On ANI Report