On Thursday, US President Donald Trump issued a severe warning to the BRICS group of emerging economies, threatening them with 100% tariffs if they abandon the US dollar as a form of international payment.

“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is over,” Trump said on his social media platform, Truth Social. “We will seek a formal guarantee from these ostensibly hostile countries that they would not establish a new BRICS currency or support any other currency to replace the great US dollar.

“If they refuse, they will face 100 percent tariffs and should expect to lose access to the wonderful US economy,” said Mr. Trump. The BRICS abbreviation stands for Brazil, Russia, India, China, and South Africa, the five founding members. However, in early 2024, Iran, Ethiopia, Egypt, and the United Arab Emirates joined BRICS, with Indonesia entering at the beginning of January.