Trump’s Threat to BRICS and India’s Stand on Currency Replacement

• US President Donald Trump has threatened to impose 10% tariffs on BRICS members, a move he has made several times since his inauguration.
• Trump has previously viewed BRICS as “anti-American” and a threat to the dollar, threatening 100% tariffs on them.
• The tariffs were triggered by BRICS declarations in South Africa in 2023 and Russia in 2024, which discussed a BRICS Cross-Border Payments Initiative.
• The tariff rate was dropped to a tenth from the original threat, and it remains unclear whether Trump will proceed with the BRICS tariffs.
• Trump’s concerns about de-dollarisation have been denied by most BRICS members, with the South African Ministry of Foreign Affairs explaining that using national currencies within the grouping is not the same as replacing the dollar as the global standard.
• The BRICS Rio declaration 2025 does not directly challenge the U.S. or the dollar, but acknowledges progress made by the BRICS Payment Task Force in identifying possible pathways to support discussions on the potential for greater interoperability of BRICS payment systems.
• The Modi government has objected to Trump’s categorisation of BRICS as “anti-American,” referring to a report prepared by Russia during its chairmanship of BRICS.
• In March 2025, External Affairs Minister S. Jaishankar stated that there is no Indian policy to replace the dollar, acknowledging differences among BRICS members and the group’s unified position on the issue.