US President Donald Trump has issued a strong warning to the BRICS bloc, which includes India, cautioning against any move to replace the US dollar with an alternative currency. He threatened to impose 100% tariffs on countries that attempt to introduce a new BRICS currency or back any other currency to challenge the dominance of the dollar.

Taking to his social media platform, Truth Social, on Friday, Trump declared, “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER.” He further stated that nations involved in such efforts should prepare for significant economic consequences.

“We will require a commitment from these seemingly hostile countries that they will not create a BRICS currency or support any replacement for the mighty US dollar. Otherwise, they will face 100% tariffs and can say goodbye to selling into our wonderful economy,” he added.

BRICS, an intergovernmental group consisting of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the UAE, has been exploring alternatives to the US dollar for international trade. While the dollar remains the dominant currency in global transactions, accounting for over 90% of trade, other currencies like the euro, Japanese yen, and British pound also play significant roles.

Trump's latest remarks follow similar warnings he issued after taking office earlier this month, where he stated that any attempt by BRICS to move toward "de-dollarisation" would face repercussions. He had previously cautioned the bloc in December about the possibility of punitive tariffs if they pursued plans to move away from the dollar.

Responding to Trump's stance, External Affairs Minister S. Jaishankar reiterated that India has never supported the idea of abandoning the US dollar. He emphasized that while India explores alternative trade mechanisms in its national interest, there are no current proposals for a dedicated BRICS currency.

While the US has not opposed the use of other major global currencies, such as the euro or yen, a BRICS currency—if introduced—would serve as a regional alternative, reducing dependence on a single currency for trade among member nations.