Russia Responds to Trump’s Tariff Threat: BRICS Denies Plans for Dollar Rival Currency

Kremlin spokesman Dmitry Peskov countered former President Donald Trump’s threat of imposing 100% tariffs on BRICS countries, asserting that the group has no intention of challenging the US dollar’s dominance in global trade. This statement, reported by Reuters on January 31, sought to clarify the intentions of BRICS, a group of emerging economies that includes Brazil, Russia, India, China, and South Africa.

Peskov emphasized that the BRICS bloc has never discussed creating a common currency, nor does it plan to do so. Instead, the group is focused on fostering new joint investment platforms that will enable mutual investments in developing countries, aiming to strengthen economic cooperation between its members. “The point is that BRICS is not talking about creating a common currency,” Peskov stated.

While BRICS has long championed economic cooperation, recent discussions among its members about a potential “common currency” have raised concerns. The idea, primarily pushed by Brazil in 2023, would serve as a tool to reduce dependence on the US dollar and shield member countries from its exchange rate fluctuations. Proposals for a gold-backed currency, known as the “Unit,” or a digital currency have been floated as possible alternatives to the dollar for cross-border trade and settlement.

The debate gained momentum after Trump, on January 30, warned BRICS nations that any move to create such a currency would face severe repercussions, including the imposition of 100% tariffs. “There is no chance that BRICS will replace the US dollar in international trade,” Trump declared on social media, further asserting that any nation pursuing such a path would risk significant economic consequences.

Peskov, however, downplayed Trump’s threat, reminding that similar comments were made by the former president in 2024. He added that US experts may need to better understand BRICS’ objectives.

Also Read: BRICS Common Currency Plan: Is It Over or Just Paused? Latest Developments and Official Statements

As global financial dynamics shift, Trump’s stance on currency sovereignty continues to spark debate, particularly regarding the future of central bank digital currencies (CBDCs) and the potential for a digital dollar.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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