100% BRICS Tariff Threat: Why US Consumers Will Pay the Price of De-Dollarization War
The US has threatened a 100% tariff on BRICS imports to combat de-dollarization. Economic analysis confirms this is a tax on Americans, predicting higher inflation and more supply chain disruptions.
.BRICSTariffs DeDollarization GlobalTradeWar USInflation EconomicImpact AmericaFirst
November 21, 2025
The relationship between the USA and BRICs Nations is characterized by growing tension as the BRICS group (Brazil, Russia, India, China, South Africa, and newer members like Egypt, Ethiopia, Iran, and the UAE) continues to seek greater influence and a shift away from US-centric global governance.
-BRICS Expansion and Influence: The bloc is actively expanding its membership and influence, positioning itself as a stronger voice for the "Global South."1 Brazil holds the BRICS Presidency for 2025, with a focus on global governance reform and cooperation among developing nations. India will assume the BRICS Chairmanship on January 1, 2026, and will host the 18th BRICS Leaders Summit later in the year.
-De-dollarization Efforts: BRICS nations are continuing their efforts to reduce reliance on the US dollar for international trade, primarily by promoting trade settlement in local currencies. This is seen by the US as a direct challenge to the dollar's status as the world's reserve currency. The BRICS bloc has been exploring alternative payment systems, such as "BRICS Pay."5
-US Administration Stance: The current US administration views the BRICS bloc, and especially its de-dollarization efforts, as a significant economic and geopolitical threat. Policy is being formulated to treat BRICS as a unified bloc, raising the cost of monetary integration for its members.
Trump's 100% Tariff Threat:
In terms of being a publicly stated policy position, a 100% tariff threat was issued from the US administration targeting BRICS nations for de-dollarization. The US administration has repeatedly threatened to impose a 100% tariff on all imports from BRICS nations if they continue to pursue a new BRICS currency or actively back other currencies to replace the US dollar in global trade.
The threat is explicitly linked to forcing a commitment from these nations to not abandon the US dollar.
Such a tariff would dramatically disrupt global supply chains and trade, given the scale of BRICS' trade with the US (e.g., US imports from BRICS totaled over $600 billion in 2024).
Truth on Tariffs: Who Pays?
-Tariffs are a Tax on Importers/Consumers: Economists overwhelmingly agree that a tariff is a tax levied on the importing country's businesses (importers), not the exporting country's. These importers will then either absorb the cost (reducing their profit) or, more likely, pass the cost directly on to US consumers through higher retail prices.
-Economic Impact on the US: Independent analysis (like that from the Peterson Institute for International Economics) on a theoretical 100% tariff on BRICS imports projects:
*Higher Inflation: The overall price level in the US would be significantly higher.
*Lower GDP: US Gross Domestic Product would be lower than it would be without the tariffs.
In short, the tariffs would result in higher prices for US consumers for goods like electronics, clothing, and machinery imported from BRICS nations, contrary to the idea that the cost would only be borne by the BRICS countries.
In summary, the tariff threat is real and explicitly aimed at combating de-dollarization, but economic analysis suggests the proposed policy would also lead to substantial negative consequences for the US economy and its consumers.
What's Next? Continuing the BRICS Deep Dive
Don't miss our continuation tomorrow on BRICS Strategy!
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