US President Donald Trump, who assumed office on January 21, 2025, has issued stern warnings to the BRICS nations—Brazil, Russia, India, China, and South Africa—against creating a rival common currency or supporting alternatives to the US dollar.

In a bold move, he threatened to impose 100 percent tariffs on products from any BRICS country that attempts to challenge the dominance of the US dollar.

Trump conveyed his stance through his social media platform, Truth Social, stating that countries seeking to replace the US dollar should anticipate a loss of American support.

Economists at the World Economic Forum in Davos, Switzerland, suggest that Trump's threats may actually intensify the efforts of these countries to reduce their reliance on the US dollar.

The US dollar has long been the dominant global currency and a major reserve currency for central banks, but its supremacy is increasingly being challenged, particularly due to China's initiatives to internationalize its currency.

Kenneth Rogoff, a Harvard University economist, noted that such threats from the US can reinforce the motivation for countries to diversify their currencies away from the dollar.