United States President, Donald Trump, has taken a confrontational stance towards the BRICS (Brazil, Russia, India, China, and South Africa) and BRICS+ - (10-member grouping that includes Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia) economic alliances.

On multiple occasions, Trump has threatened to impose 100 or 150 per cent tariffs on BRICS+ nations as they seek to challenge the dominance of the U.S. dollar in global trade and finance. In response to a question about the BRICS nations setting up their own currency, he said: “If they want to play games with the dollar; if any trading gets through it’ll be 100 per cent tariff, at least.”

Trump first made such tariff threats last December and then in January 2025 after his inauguration ceremony. On social media, Trump said: ‘’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 U.S. dollar or, they will face 100 per cent tariffs.

“There is no chance that BRICS will replace the U.S. dollar in international trade, or anywhere else, and any country that tries should say hello to tariffs, and goodbye to America.’’ Africa’s largest economy and most populous country, Nigeria, has shown great interest in cooperation with the BRICS nations.

It has recently been included as a partner country along with 12 other countries, indicating its growing ties with the group. Nigeria’s BRICS collaboration will open up opportunities for foreign direct investment (FDI) and economic cooperation.

In 2024, it reportedly attracted $1.27 billion in foreign capital, and its inclusion among BRICS partners is seen as a way to further strengthen these economic ties and use the relationships to develop its infrastructure, energy, and industry. With the country rich in natural resources, they could be looking to diversify its trade partnerships beyond its traditional Western allies, with BRICS providing an opportunity to interact with developing economies, especially in areas such as oil and gas, agriculture and technology.

Nigeria’s Foreign Minister, Yusuf Tuggar, has stressed the importance of using their large economy and population to strengthen trade ties with BRICS, with the government reportedly viewing BRICS as a platform for strengthening its influence on the world stage. Along with Egypt and South Africa, its potential full BRICS membership could strengthen its geopolitical influence – focussing on creating a multipolar world is consistent with Nigeria’s foreign policy goals aimed at reducing dependence on Western powers.

With BRICS’ own NDB (New Development Bank), which provides financing for infrastructure and sustainable development projects to its member and partner countries, Nigeria is expected to use such financing to address its infrastructure shortages and support its economic development goals. The country’s government, however, has expressed a clear intention to become a full member of the BRICS over the next two years, which would allow it to be more active in shaping the bloc’s policies and initiatives.

Observers are raising the alarm that Nigeria’s strong ties with Western powers and internal economic and political problems could mar its ambition to fully integrate with the BRICS - who have chosen to ignore Trump’s threats and go ahead with exactly what they intend on doing – finding an alternative to U.S. dollar for global trade. There are currently discussing the creation of a new currency to facilitate trade and reduce dependence on the dollar, particularly in response to U.S. sanctions on Russia and other countries.

“BRICS is committed to ending U.S. dollar dominance no matter what,” said Brazil president, Lula da Silva (pic), in a direct response to Trump’s repeated threats. The U.S.’s administration has historically used sanctions as a tool to counter perceived threats to U.S. dominance, and this approach is expected to continue.

Sanctions on Russia, a key BRICS member, have already pushed the bloc to explore alternatives to the dollar. His current aggressive stance on sanctions is inadvertently fuelling BRICS de-dollarisation efforts.

By targeting BRICS nations with economic pressure, the U.S. president aims to weaken their ability to cooperate and challenge America’s domination in Western financial systems. His threats are also set to discourage aspiring BRICS members from aligning with the bloc. As such, BRICS nations are now strengthening their cooperation and pushing harder for de-dollarisation.

The outcome of this confrontation will have a significant implication for the global financial system.