Trump’s 100% Tariff Threat: The High Cost of Confronting BRICS and De-Dollarization

Trump’s 100% tariff warning against BRICS de-dollarization could reshape global trade, weaken U.S. dollar dominance, and drive inflation at home—signaling a costly clash between American power and a multipolar financial order.
hasht#TrumpTariffs hashtag#BRICS hashtag#Dedollarization hashtag#GlobalEconomy hashtag#USDollar hashtag#TradeWar

hashtag#Geopolitics hashtag#Inflation hashtag#MultipolarWorld hashtag#EconomicPolicy

November 29, 2025

De-dollarization by BRICS countries—now including Brazil, Russia, India, China, South Africa, and several new members—refers to efforts to reduce reliance on the US dollar in trade, finance, and reserves.

Since 2023, BRICS has expanded and prioritized using local currencies for trade, with initiatives like BRICS Pay to facilitate transactions outside the dollar-based SWIFT system. In 2024, about 90% of Russia’s trade within BRICS was settled in local currencies, and China, India, Brazil, and others have made similar moves. Bilateral agreements, such as Yuan-Rupee or Yuan-Real settlements, are growing, and BRICS nations are increasingly using gold and other commodities instead of the US dollar, to back reserves

The direct consequence is a gradual erosion of the US Dollar’s global dominance. While the dollar remains the world’s primary reserve currency (about 59% of global reserves as of 2024), the trend toward local-currency trade is chipping away at its share.

Estimates suggest that hundreds of billions of dollars in intra-BRICS trade are now settled in non-dollar currencies each year. This reduces the “exorbitant privilege” the US has enjoyed—easy financing of deficits and lower borrowing costs—because global demand for dollar assets is slowly declining.

For the US economy, this means slightly higher interest rates and borrowing costs, as foreign investors demand more compensation for holding dollar-denominated assets amid greater perceived risk. A weaker dollar could help US exports but also raises import prices, potentially fueling inflation.

Geopolitically, reduced dollar reliance limits the effectiveness of US sanctions and tariffs, giving BRICS and other nations more financial independence.

Globally, de-dollarization is nudging the system toward a more multipolar financial order, with multiple currencies and payment systems sharing the stage. This diversification can reduce vulnerability to US policy shocks but also increases complexity and transaction costs for international trade. The process is gradual and faces internal challenges within BRICS, but it signals a shift away from dollar-centric global finance that could have lasting implications for US economic and geopolitical influence.

In July 2025, President Trump explicitly warned that any country aligning with BRICS “anti-American” policies—such as efforts to create a new BRICS currency or back another currency to challenge the dollar—would face tariffs as high as 100%, effectively threatening to cut off their access to the US market. This is a direct response to BRICS’ de-dollarization moves, which Trump has described as a threat to US economic and geopolitical dominance. The 100% tariff on BRICS remains a highly aggressive, unexecuted threat, but it is part of a broader, implemented policy of significantly increased tariffs by the US administration.

If President Trump imposes 100% tariffs on BRICS countries, the consequences for the American consumer and economy would be significant. According to economic modeling, such tariffs would lower US GDP by about $432 billion. Inflation would rise, eroding purchasing power and potentially prompting the Federal Reserve to raise interest rates, which would further increase borrowing costs for mortgages, car loans, and business credit.

In summary, a 100% tariff on BRICS imports would lead to higher prices, reduced economic growth, and increased inflation for the US, while also pushing BRICS countries to deepen their own economic integration and move further away from the US dollar. SNP

Comment below, what’s your take? Like and repost

For information only and not a recommendation to buy or sell shares

Mining News: 

www.minestockers.com (Disclosure, The writer is a shareholder of minestockers.com)