Two weeks after Nigeria became a partner country, US President Donald Trump has reiterated his threat to impose 100% tariffs on BRICS nations’ exports if they attempt to replace the US dollar as the dominant currency in international trade.
In a statement, Trump emphasized on his social media platform Truth Social, that BRICS countries must maintain the US dollar’s role in global trade or face economic consequences.
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile 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.
“They can go find another sucker Nation. There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!”
Nigeria’s broader aspirations for inclusive growth
On January 17, 2025, Brazil announced that Nigeria had been admitted as the 9th partner country of BRICS, joining Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan.
The following day, Nigeria’s Ministry of Foreign Affairs confirmed the development, stating that the partnership aligns with Nigeria’s broader aspirations for inclusive growth, regional integration, and a more equitable global economic framework.
“The Federal Government of Nigeria has accepted the invitation to join BRICS as a partner country. The formal acceptance to participate as a partner country underscores Nigeria’s commitment to fostering international collaboration, leveraging economic opportunities, and advancing strategic partnerships that align with Nigeria’s development objectives,” the statement read in part.
The BRICS group – Brazil, Russia, India, China, and South Africa – has been discussing ways to reduce reliance on the US dollar for years. The BRICS economic collaboration has intensified since Western sanctions were imposed on Russia following its invasion of Ukraine. In recent years, BRICS has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
What you should know
While BRICS+ does not have a common currency, its members have promoted trade in their local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin explicitly called for de-dollarisation, stating that BRICS nations “must expand settlements in national currencies and enhance cooperation between banks.”
- The push gained further momentum at the June 2024 BRICS foreign ministers’ meeting in Russia, where member states advocated for using local currencies in bilateral and multilateral trade.
- Despite concerns over de-dollarisation, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Center last year found that neither the euro nor BRICS+ nations had successfully reduced global reliance on the dollar.
- Trump’s threats come as he seeks to maintain this dominance. His use of tariffs as leverage is not new. The 78-year-old’s threats against BRICS+ follow his recent push to impose tariffs on Mexico and Canada, the United States’ largest trading partners. Trump has argued that such tariffs are necessary to combat illegal immigration and drug trafficking, particularly fentanyl, into the US.
During his campaign, Trump called India a “very big abuser” of trade policies and has now extended similar rhetoric towards other BRICS+ members. He has argued that by increasing tariffs on other countries, he can lower taxes for American businesses and workers, bringing factories back to the US.
