The Kremlin has issued a strong rebuke to U.S. President-elect Donald Trump’s recent ultimatum to BRICS nations, warning that any attempt by Washington to enforce the dominance of the U.S. dollar will backfire.
On Saturday, Trump threatened to impose 100% tariffs on BRICS countries—Brazil, Russia, India, China, and others—if they proceed with plans to create or adopt a new currency that could undermine the U.S. dollar’s global role. Trump demanded a commitment from these nations to abandon efforts supporting alternative currencies.
Kremlin spokesperson Dmitry Peskov dismissed the threat on Monday, stating that the dollar is losing its appeal as a global reserve currency and that Trump’s strategy would accelerate the trend of countries adopting national currencies for trade.
“More and more nations are shifting to the use of national currencies in their trade and economic activities,” Peskov said. “If the U.S. resorts to economic force to compel others to use the dollar, it will only strengthen the global shift toward alternative currencies.”
While the U.S. dollar remains the dominant global reserve currency, bolstered by a strong U.S. economy and geopolitical risks, recent geopolitical events—including Western sanctions on Russia—have pushed BRICS countries to explore alternatives. Although the BRICS bloc has yet to establish a unified currency, discussions have gained momentum.
According to a study by the Atlantic Council’s GeoEconomics Center, the U.S. dollar continues to dominate global reserves, with neither the euro nor BRICS-backed initiatives reducing reliance on it. However, Peskov highlighted that increasing economic fragmentation is making alternative currencies more attractive to many nations.
Trump’s comments come amid heightened political and economic tensions, with the future of global currency systems hanging in the balance.