NEW DELHI: Congress MP Shashi Tharoor dismissed US President Donald Trump‘s tariff threats against Brics nations, labeling them “a bit empty”, citing the absence of plans to introduce an alternative to the US dollar.
Tharoor described the dollar as a “practical convenience” for most nations, indicating that Brics has not made a substantial proposal to establish an alternative currency.
Addressing Trump’s tariff threats, 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.”
“There may have been some discussion, and we certainly have in the past had some examples of Rupee-Rubel 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. And therefore, 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 it seriously. I don’t see any support in the Indian government for such a proposal. So, until that happens, why should we worry,” he added.
Tharoor’s comments come after Trump’s renewed warnings to Brics nations regarding potential currency alternatives.
Trump warned on Truth Social: “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is over. We are going to require a commitment from these seemingly hostile Countries that they will neither create a new Brics Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy. 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!”
This statement reinforced Trump’s position on maintaining the dollar’s dominance in global trade, suggesting significant economic repercussions for nations seeking alternatives.
At the Oval Office signing ceremony, Trump declared, “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.”
Responding to former President Biden’s comments, Trump asserted American dominance, stating: “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.”
These warnings follow Trump’s previous statements before becoming the 47th President, threatening 100 per cent tariffs on Brics nations’ imports if they introduced a new currency.
During the 15th Brics Summit in 2023, Russian President Vladimir Putin advocated for de-dollarisation, suggesting BRICS nations should increase national currency settlements and strengthen banking cooperation.
In June 2024, Brics foreign ministers convened in Russia’s Nizhny Novgorod, supporting increased use of local currencies in trade and financial transactions between member countries.