Official statements from the Indian government or Reserve Bank of India

Trump Threatens 100% Tariffs on BRICS Nations Over Currency Plans; India Denies De-Dollarization Intent

Dec 7, 2024, 09:15 AM

President-elect Donald Trump has issued a warning to the BRICS nations, threatening to impose 100% tariffs on their products if they proceed with plans to develop an alternative currency to the U.S. dollar. This statement underscores Trump's commitment to maintaining the dollar's status as the world's reserve currency, which he argues is essential for U.S. trade and policy. In response, Indian officials, including the Reserve Bank of India Governor Shaktikanta Das and External Affairs Minister S. Jaishankar, have stated that India is not pursuing de-dollarization and has no plans to create a BRICS currency. They emphasized that the country aims to reduce dependence on a single currency as part of a broader strategy to derisk trade, rather than weaken the dollar. The BRICS nations, which include Brazil, Russia, India, China, and South Africa, have also expressed no interest in undermining the U.S. dollar, despite discussions about a common currency. The situation highlights the tensions between the U.S. and BRICS regarding currency policies and international trade dynamics.