Trump Draws Battle Lines with BRICS over De-dollarization Plans

President-elect Donald Trump has drawn a clear line, warning the BRICS bloc not to push forward with plans to bypass the US dollar in global trade. In a fiery post on his Truth Social platform on November 30th, Trump declared that any efforts by BRICS nations to create an alternative currency or support a rival monetary system would face serious consequences, including a 100% tariff on their goods and restrictions on access to the U.S. market. The idea that BRICS countries are trying to stay away from the dollar while we stand by and watch has ENDED, Trump wrote, emphasizing his commitment to protecting the global dominance of the US dollar. This declaration reinforces Trump's long-standing 'America First' approach, which has shaped his economic and foreign policy vision. His team is said to have begun implementing punitive measures to counter non-dollar strategies. The BRICS bloc - consisting of Brazil, Russia, India, China, and South Africa - has actively explored alternative solutions to the dollar since 2023. In the landmark summit that year, member countries discussed mechanisms such as using local currencies for trade settlement, adopting China's renminbi, and even developing stablecoins based on blockchain. Their logic is very clear: reduce dependence on the US dollar and protect their economy from Western sanctions. The bloc's ambitions have gained further momentum this year as it expanded its membership for the first time in over a decade, adding major economies such as Saudi Arabia and the UAE, along with Iran, Ethiopia, and Egypt. With 34 more countries expressing interest in joining, BRICS is positioning itself as a formidable economic counterweight to Western influence. Market analysts believe that blockchain-based currencies can help this bloc avoid sanctions and provide a new framework for international trade. However, such actions directly challenge the reserve status of the US dollar, the foundation of the US economic power. Trump's hardline stance, although predicted and signaling potential escalation in global economic tensions. The proposed tariffs could disrupt trade with BRICS countries, which account for over 40% of the global population and an increasing share of world GDP. On the other hand, the growing influence of BRICS and alternative banking networks may encourage member countries to move forward regardless of risks. Observers warn that this confrontation could reshape the international financial landscape. If BRICS succeeds in creating a non-dollar-centered trading system, the ripple effects could weaken the US's influence on global economic governance. Conversely, Trump's aggressive policies may deter smaller countries from participating in the bloc's de-dollarization efforts. When Trump prepares to take office in January, the simmering conflict between the US and BRICS could emerge as a decisive issue in his presidency — and a crucial moment in the development of global trade.