US President-elect Donald Trump has vowed 100% tariff on BRICS countries if they make any move to replace the US dollar and sought a commitment from the nine-member group that includes India, Russia, China, and Brazil.

Formed in 2009, BRICS is the only major international group of which the United States is not a part. Over the past few years a few of its member countries, in particular Russia and China, are seeking an alternative to the US Dollar or create own BRICS currency. India has so far not been part of the move.

On Saturday, in a post on Truth Social, a platform owned by him, Trump warned BRICS nations against such a move.

“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” the president-elect said.

“We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100% Tariffs and should expect to say goodbye to selling into the wonderful US Economy,” Trump warned.

“They can go find another ‘sucker!’ There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America,” he said.

During the 2023 summit, the BRICS nations resolved to explore the viability of a new shared currency. This initiative was proposed by Brazilian President Luiz Inácio Lula da Silva.

However, India said it is against de-dollarisation.

India’s External Affairs Minister S Jaishankar, addressing de-dollarization at the Carnegie Endowment for International Peace, clarified India’s stance on the US dollar.

He emphasized that India has no “malicious intent vis-a-vis the dollar” and does not target it through economic or strategic policies. However, challenges arise when trade partners lack dollars, prompting India to explore alternative settlements.

The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER.

Jaishankar noted that US policies sometimes complicate dollar-based trade, necessitating “workarounds” to sustain business. Reflecting on global economic shifts, he stated, “We spoke about rebalancing… obviously all of this is also going to reflect on currencies and economic needs,” underscoring India’s pragmatic approach.