US President Donald Trump’s threat to impose 100 per cent tariffs against BRICS nations over possible attempts to replace the US dollar in global trade “seem empty” as there is no plan to introduce an alternative currency, Congress MP Shashi Tharoor said on Friday.
Mr Tharoor, who is a Lok Sabha MP from Thiruvananthapuram, also said the dollar is a “practical convenience for most countries in the world” and there is no serious proposal to replace it.
The Congress leader’s remarks came hours after Mr Trump, who recently assumed office for another term, warned that he will impose 100 per cent tariffs against BRICS nations if they try to replace the US dollar in international trade. “They can go find another sucker Nation. There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!,” he said.
BRICS is an intergovernmental organisation of 10 countries – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
Speaking to reporters outside Parliament, Mr Tharoor said: “I heard this comment by President Trump. But the fact is there is no serious proposal for the BRICS to come up with an alternative currency to the dollar. The dollar is a practical convenience for most countries in the world.”
He added: “There may have been some discussion, and we certainly have in the past had some examples of Rupee Ruble trade with Russia, Rupee Riyal trade with Iran, and so on. So, that’s not impossible. An alternative international currency. I don’t think there is any particular plan whatsoever to do that.”
Therefore, the Congress leader said, “the threats of the President seem a bit empty because it’s only if there is an actual proposal that comes up and that countries like India are taking forward seriously.” “I don’t see any support in the Indian government for such a proposal. So, until that happens, why should we worry,” he said.
Mr Trump has repeatedly expressed his stance against de-dollarisation, warning that BRICS countries must maintain the US dollar’s role in global trade or face economic consequences.
During the signing ceremony at the Oval Office, the US President had directly warned BRICS countries against moving away from the dollar. “As a BRICS nation… they’ll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they’ll give it up immediately,” he said.
He also dismissed the idea that the US was in a vulnerable position, referring to a statement by former President Joe Biden. Trump insisted that the US holds leverage over BRICS countries. “It’s not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, no, we have them over a barrel. And there’s no way they’re going to be able to do that,” he said.
The BRICS economic collaboration has intensified after Western sanctions were imposed on Russia following its invasion of Ukraine.
While BRICS does not have a common currency, its members have promoted trade in their local currencies. At the 15th BRICS Summit in 2023, Russian President Vladimir Putin explicitly called for de-dollarisation, stating that BRICS nations “must expand settlements in national currencies and enhance cooperation between banks”.
The push gained momentum at the June 2024 BRICS foreign ministers’ meeting in Russia, where member states advocated for using local currencies in bilateral and multilateral trade.
Despite concerns over de-dollarisation, the US dollar remains the world’s dominant reserve currency. A study by the Atlantic Council’s GeoEconomics Center last year found that neither the euro nor BRICS nations had successfully reduced global reliance on the dollar.
