Trump Warns Against BRICS Currency
President-elect Donald Trump issued a stark warning to the BRICS nations. The United States will impose 100% tariffs if they move forward with plans to create a new BRICS currency. Trump made his position very clear. He said, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. 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 U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”1
Trump’s remarks underscored his intent to protect the dollar’s dominance in global trade. He added, “They can go find another ‘sucker!’ There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”2
The Growing Influence of BRICS
The BRICS alliance, formed in 2011, originally consisted of Brazil, Russia, India, China, and South Africa. In 2024, Iran, the UAE, Ethiopia, and Egypt joined. Thirty-four more nations have expressed interest in joining. The group has been exploring a new currency. They want to end dollar dominance and circumvent Western influence and sanctions.
While still in the planning stages, the proposed currency, is tentatively called the “Unit.” It may be pegged 40% to gold and 60% to BRICS national currencies. If adopted by non-Western nations, it could undermine U.S. economic supremacy. A new currency could drastically reduce demand for dollars and Treasury bonds. The consequences of which could be catastrophic for the U.S. economy.
Steps Toward a New Economic World Order
Russian President Vladimir Putin recognized the need for patience in creating such a world changing shift. He said, “Its time has not come yet. We need to be very careful and act gradually, without any rush.” Meanwhile, BRICS nations are building the foundations of this new world order. They are increasingly trading with national currencies and coordinating central bank efforts to bypass the dollar. Their October summit announced the BRICS Cross-Border Payment Initiative. It would eliminate the need for dollar conversions in international trade.3
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Tariffs and Global Pushback
Trump’s tariff threats reflect his broader use of economic leverage. He recently threatened Canada and Mexico with tariffs if they don’t address issues of drugs and crime. However, Russian officials dismissed his remarks. They argue the dollar’s declining appeal stems from the U.S. weaponizing it. Kremlin spokesperson Dmitry Peskov warned, “If the U.S. uses economic force to compel countries to use the dollar, it will further strengthen the trend of switching to national currencies.”5
De-dollarization IS happening. The dollar’s share of global reserves has fallen to its lowest in 25 years. Central banks are diversifying reserves with gold and alternative currencies. They are also moving their gold reserves back home instead of storing them in London, as is convention. Analysts think this is in preparation for a shift in the global economic order.
Gold’s Role in the Shift
Gold has already gained 30% this year, supported by central bank purchases and rate cuts. Institutions like Goldman Sachs and UBS are expecting fresh record highs in 2025.
Gold prices dipped slightly after Trump’s BRICS warning because it strengthened the dollar.6
Yet, the tariffs meant to protect the dollar may end up boosting gold. That’s because they may fuel trade wars and inflation. And send investors flocking to safe haven gold.
Russia recognizes the essential role of gold in transforming the economic world order. They have proposed a BRICS Precious Metals Exchange. Such a move would upend the traditional precious metals market. And set off a seismic change in how gold is priced and traded.
Conclusion
President-elect Trump is taking the lead to defend the U.S. dollar’s role as the world’s trade and reserve currency. He recognizes the severe threat posed by the de-dollarization movement. Last year, Trump said countries are dropping the U.S. dollar “like flies,” adding that if the U.S. dollar loses its dominant position in global trade, it would be “the equivalent of losing a war.”7
The tools he is choosing to save the dollar, tariffs, could have unintended negative consequences. Individual Americans are finding themselves caught in the middle of a global currency battle that may define the world’s economic future. While overwhelming, there is a way to protect your individual financial future. Holding precious metals in a Gold IRA offers long term value protection. To learn more about safeguarding your future, call us today at 800-462-0071.
