Congress MP Shashi Tharoor from India has responded to former US President Donald Trump’s recent threats regarding the potential de-dollarisation efforts of BRICS nations. In an interview, Tharoor, a prominent leader of the Indian National Congress, dismissed Trump’s warnings about tariffs on BRICS countries if they attempt to replace the US dollar with an alternative currency, calling the threats “empty” as no serious proposals exist for such a shift.
Tharoor explained that the idea of creating an alternative currency to the US dollar by BRICS is not a pressing agenda. He emphasized that while there have been discussions in the past about using national currencies for trade—such as the Rupee-Ruble trade with Russia or the Rupee-Riyal trade with Iran—there is no formal plan within BRICS nations to challenge the dominance of the US dollar. He described the dollar as a “practical convenience” for most countries worldwide, and pointed out that the Indian government, led by Prime Minister Narendra Modi, is not pursuing any serious moves to replace it.
The Congress MP’s comments come after Donald Trump, in a post on Truth Social, warned that BRICS nations would face “100 per cent tariffs” if they tried to replace the US dollar. Trump stated that any attempt by BRICS to back an alternative currency would result in severe economic consequences, urging countries to commit to the continued use of the US dollar in global trade. He declared, “There is no chance that BRICS will replace the US Dollar in International Trade… and any Country that tries should say hello to Tariffs, and goodbye to America!”
Trump reiterated his position during a signing ceremony at the Oval Office, warning BRICS countries that any attempt to move away from the dollar would lead to immediate punitive tariffs. He added that the US had a strong position in global trade and dismissed suggestions that the country was vulnerable to economic shifts within BRICS.
The ongoing conversation around the role of the US dollar in global trade comes amidst growing support within BRICS for de-dollarisation. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin called for expanding the use of national currencies in bilateral and multilateral transactions. Additionally, BRICS foreign ministers met in Russia in June 2024, where they advocated for increasing the use of local currencies in trade, marking a shift towards reducing reliance on the US dollar.
