Supply Chain Reports – 10/15/2025
U.S. President Donald Trump reiterated his stance against efforts by BRICS nations to create an alternative to the U.S. dollar, calling the initiative an “attack on the dollar” and warning of tariffs on member countries pursuing such plans.
Speaking during a bilateral meeting with Argentine President Javier Milei, Trump said that his tariff threats have prompted several nations to reconsider their participation in the BRICS group, which includes Brazil, Russia, India, China, and South Africa among its founding members. The bloc expanded in recent years to include Egypt, Ethiopia, the United Arab Emirates, Iran, and Indonesia.
“Anybody who trades in the dollar has a much greater advantage,” Trump told reporters. “I told those who want to be part of BRICS, that’s fine — but we’ll impose tariffs if they move to replace the U.S. dollar. Since then, they’ve been dropping out, and they’re no longer discussing it.”
The BRICS alliance, originally established in 2009 as an informal economic forum, has held ongoing discussions about reducing reliance on the U.S. dollar in international trade. The idea of creating a shared BRICS currency was first proposed in 2023, with the goal of providing member nations more payment options and reducing exposure to exchange rate volatility.
Trump described the initiative as a challenge to U.S. financial dominance, saying that he would “not allow the dollar’s leadership to be undermined.” Earlier this year, his administration warned that member states supporting a new BRICS currency could face tariffs of up to 100% on goods exported to the United States.
In July 2025, Trump expanded his policy, threatening an additional 10% tariff on countries aligning themselves with what he described as “anti-American economic policies of BRICS.” He emphasized that there would be “no exceptions” to this rule.
Economic observers note that these remarks follow the same line of trade protectionism that characterized Trump’s first presidency, when he also used tariffs as leverage in major trade negotiations. Analysts say the new measures could reshape trade relations with key partners, including India and China, while adding new layers of uncertainty to global supply chains.
Meanwhile, India — a founding BRICS member — has clarified that it has no intention of weakening the U.S. dollar or replacing it with another currency. External Affairs Minister S. Jaishankar stated in late 2024 that New Delhi views the dollar as essential to maintaining international economic stability.
“India has never been in favor of de-dollarization,” Jaishankar said at the Doha Forum. “The United States is our largest trade partner, and we have no interest in weakening the dollar. There is currently no proposal for a BRICS currency.”
In March 2025, Jaishankar reaffirmed that India’s approach to the global financial system is centered on cooperation, not replacement. “The dollar as a reserve currency is the foundation of international economic stability. What we need today is more stability, not less,” he added.
He also noted that BRICS members do not share a unified position on reducing dollar dependence, saying that India’s priority is to strengthen its trade and financial ties with the United States. “Working with the U.S. to reinforce the international financial system should be the focus,” Jaishankar said.
A 2024 report by the Atlantic Council’s GeoEconomics Center found that the U.S. dollar remains the world’s dominant reserve currency, accounting for the majority of global trade settlements and central bank reserves. The study also indicated that no major economy, including those in BRICS, has been able to significantly reduce reliance on the dollar.
Economists say that while Trump’s tariff policy may influence short-term trade behavior, the long-term viability of a BRICS-led currency remains uncertain. Most experts view the proposal as a “political project” rather than an imminent financial shift.
The IMF and other institutions have previously cautioned that efforts to challenge dollar dominance could disrupt established financial systems, potentially creating volatility in trade settlements and investment flows.
For now, Trump’s renewed emphasis on tariffs has reinforced his administration’s commitment to defending the dollar’s position in global trade. However, with many BRICS members continuing to participate in the group’s discussions, analysts believe that the debate over currency diversification is likely to persist.
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