World leaders are very nervous about what Trump will do.
The Kremlin recently warned that any U.S. efforts to pressure nations into using the U.S. dollar would backfire, particularly after President-elect Donald Trump’s remarks over the weekend. Trump made it clear that if BRICS countries—Brazil, Russia, India, China, and other emerging nations—move forward with creating their own currency or adopting alternatives to the U.S. dollar, they would face crippling tariffs of up to 100%.
While BRICS nations have yet to establish a common currency, discussions have intensified in recent years, especially following Western sanctions imposed on Russia over the conflict in Ukraine. Trump’s threat comes as global financial dynamics are shifting, with many countries increasingly looking to bypass the dollar in international trade. According to Dmitry Peskov, a spokesperson for the Kremlin, more and more nations are opting for their own national currencies when trading with each other—an undeniable sign that the dollar’s dominance is slowly eroding.
Peskov’s statement suggests that if the U.S. continues to push countries into using the dollar through “economic force,” it will only accelerate the movement away from the greenback. This shift is especially evident in BRICS nations, which have begun exploring ways to bypass the dollar in their trade agreements and financial systems. With economic powerhouses like China and India leading the charge, the dollar’s role as the world’s primary reserve currency could be in jeopardy.
Despite this, the U.S. dollar still maintains a commanding position on the global stage. A recent report by the Atlantic Council’s GeoEconomics Center confirms that the dollar remains the world’s dominant reserve currency, with no other currency—whether the euro or a potential BRICS alternative—able to challenge its supremacy. However, as geopolitical tensions rise and economic nationalism spreads, the future of the dollar could be tested like never before. If the U.S. is not careful, its aggressive tactics could spur even more countries to seek alternatives, diminishing its economic leverage worldwide.
As Republicans, it’s critical to recognize that the strength of our dollar is tied to the stability of our economy. We must be cautious not to overplay our hand and risk undermining the global influence we have spent generations building. Instead of pressuring nations to comply with outdated financial systems, we should focus on reinforcing the strength of the U.S. economy and our financial markets through smart policies that attract investment, foster innovation, and promote economic freedom.