Trump threatens a trade war if BRICS replace the dollar as reserve currency  

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**Trump Warns BRICS Countries Against Using Alternative Currency**

US President has threatened to impose 100% tariffs on countries in the BRICS group if they try to replace the US dollar with a new currency. The BRICS countries include , China, , Brazil, and other nations.

In a post on his platform Truth Social, Trump said that if the BRICS countries try to create a new currency or use existing one to replace the US dollar, they will face severe penalties. He repeated his warning from last year, saying there is no chance that BRICS will replace the US dollar in international trade.

**BRICS Exploring Alternative Currency Options**

The BRICS group has been exploring ways to reduce its on the US dollar. A report by Russian and officials proposed a “multicurrency system” to shield member countries from external pressures like sanctions. The plan includes creating centers for mutual trade in commodities such as oil, natural gas, grain, and gold.

However, BRICS are not unified on this issue. China supports strengthening alternative currencies, but India is cautious about adopting a common one. Russia has also been seeking to reduce its reliance on the US dollar after facing heavy sanctions following the invasion of Ukraine.

**Russia Denies Plans for Alternative Currency**

Russian President Vladimir Putin said in October that there are no plans to create a BRICS currency, emphasizing the need for caution. Kremlin spokesperson Dmitry Peskov also denied any discussions about creating a common currency, saying that BRICS is discussing new investment platforms instead.

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