Brazil not to pursue BRICS currency idea as Donald Trump reiterates 100% tariff threat on bloc

Brazil's BRICS presidency focuses on reducing reliance on the U.S. dollar in global trade, drawing criticism from Trump.

Brazil's BRICS presidency this year will not advance a common currency for the group of major developing economies this year, four government officials said, but its agenda may pave the way for less reliance on the U.S. dollar in global trade. That agenda could draw the ire of U.S. President Donald Trump, who has repeatedly warned the BRICS group, founded by Brazil, Russia, India, China, not to challenge the dominance of "the mighty U.S. Dollar."

"There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!" Mr. Trump wrote on social media last month.

On Thursday, he repeated the threat of "100% tariffs" on BRICS nations "if they want to play games with the dollar."

Asked whether he wants to dismantle BRICS or be part of it, Mr. Trump responded, “I don’t care, but BRICS was put there for a bad purpose and most of those people don’t want it. They don’t even want to talk about it now. They’re afraid to talk about it because I told them if they want to play games with the dollar, then they’re going to be hit with a 100% tariff. The day they mention that they want to do it, they will come back and say, ‘We beg you not to do this’. BRICS is dead since I mentioned that.

“If BRICS wants to play games, those countries won’t trade with us. We won’t trade with them and if any trading gets through it’ll be a 100% tariff at least. When they hear that, what do you think they’re going to do? They’re going to say look what happened to BRICS. They didn’t want to talk about it. They don’t even want to admit that they were a member of BRICS. That’s what’s happened,” he added.

Brazilian officials, who requested anonymity to discuss plans, said the idea of a shared currency to replace the dollar, floated by President Luiz Inacio Lula da Silva and others at recent BRICS summits, has never entered technical discussions.

Three of the sources said Brazil is instead pushing reforms within BRICS to ease international payments in local currencies, opening the door to less dependence on the dollar for global trade, although they said that is not the main objective.