Trump’s criticism of BRICS and warning to BRICS member states
On October 14 2025 the US President, Donald Trump stated that the BRICS organisation was against the US Dollar (this is not the first time, that Trump has made such a claim).
During a meeting with the Argentine Prime Minister Javier Milei at the White House, Trump also flagged the fact that he had warned BRICS member states, that he would impose tariffs on member states and that as a result many countries had pulled out of the organisation.
Said the US President
‘They’re all dropping out of Brics. Brics was an attack on the dollar and I said, you want to play that game, I’m going to put tariffs on all of your products coming into the US. They said, like I said, we’re dropping out of Brics…They don’t even talk about it anymore.’
Russian President, Vladimir Putin while speaking at the Valdai Club (Sochi, Russia), on October 3, 2025 categorically stated that BRICS was not anti-dollar , but he also stated that his country faced sanctions and was left with no other option, but to trade with other countries in non-dollar-local currencies. Earlier this year Moscow had said that it had no intention of supporting a BRICS common currency .
In recent months, ties between India — which will be holding the BRICS Presidency in 2026 -and USA have witnessed some hiccups due to two factors; First, the imposition of tariffs and Trump’s repeated claims that it was his personal intervention which led to the end of the India-Pakistan conflict in May 2025 (he repeated this claim). Even amidst these tensions, India has categorically distanced itself from the idea of a BRICS Common currency . In March 2025, India’s External Affairs Minister, S Jaishankar had said :
“Regarding the role of the dollar, we are realistic. We have no issue with the dollar… We have no interest in undermining the dollar”
BRICS Members and trade in local currencies
Like several other countries, India has been supporting the idea of trade in local currencies. Here it would be pertinent to point out, that India recently paid for the purchase of Russian Oil in Yuan recently .
There have also been reports of China seeking to links its central bank digital currency (CBDC) to some Asian and Middle Eastern nations. There has been no official announcement by the People’s Bank of China or any other central banks of the country .
While there is not an iota of doubt, that countries are looking at reducing dependence upon the US Dollar given the growing uncertainty in the global economic order and with the objective of circumventing US sanctions on Russia — in the aftermath of Russia-Ukraine war. Over 90% of Russia’s trade with China and India is in local currencies. While commenting on the same, Russia’s Deputy Prime Minister Alexander Novak said:
“..with our friends from China and India, we have already switched to national currencies by 90-95%. This is automatic, without any purpose, because they don’t allow settlements in the respective currency, which used to be the hegemonic one,’
BRICS is also moving towards setting up a BRICS payment system. While it is true, that intra-BRICS trade in local currencies has risen it would be premature to believe that BRICS payment system will emerge as an alternative to SWIFT.
Not all countries are pushing for trade in local currencies with the intention of undermining the US Dollar as has been mentioned earlier.
Expansion of BRICS and growing interest in the New Development Bank
As a result of the prevailing uncertainty, several countries are showing greater interest in membership of BRICS. Four countries, Iran, Egypt, Ethiopia and UAE secured membership of the BRICS in 2024. Indonesia joined BRICS as a member in 2025. Over 30 countries have applied for full membership of the organisation.
BRICS also has 10 observer states — Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam. All the 10 observer states have also applied for full membership of BRICS.
More countries are also beginning to show interest in New Development Bank NDB. The NDB set up in 2015 provides financing for infrastructural development, energy, digital development and a gamut of other areas. Significantly, not all members of the NDB are members of BRICS and vice-versa. Indonesia, which entered BRICS in 2025 announced that it will be joining the NDB in March 2025 . The announcement was made during a meeting between Indonesian President Prabowo Subianto and Dilma Rousseff, President of the New Development Bank (NDB) on March 25, 2025. Rousseff while commenting on Indonesia’s decision to join the NDB said:
“..Catching up to the advanced economies, in the era of fourth industrial and technological revolution, requires investment in technology and innovation, which are a common objective of NDB and Indonesia”
Several Non-BRICS members are keen to join the NDB so that they can reduce their dependence upon western lending institutions.
India’s presidency of BRICS
While commenting on India’s role during it’s Presidency of BRICS, PM Modi speaking at the BRICS Summit, 2025 said :
‘Just as, during our G-20 chairmanship, we gave priority to the issues of the Global South in the agenda, similarly during our chairmanship of BRICS, we will take this forum forward in the spirit of people-centricity and humanity first’
India is likely to give a thrust to greater trade in local currencies between BRICS members and also showcase the Unified Payments Interface (UPI) network. While speaking at the BRICS Summit in 2024 at Kazan, PM Modi had stated :
‘We welcome efforts to increase financial integration among BRICS countries. Trade in local currencies and smooth cross-border payments will strengthen our economic cooperation. The Unified Payments Interface [UPI] developed by India is a huge success story and has been adopted in many countries,’
Conclusion
It is true, that BRICS has its own set problems including differences between members over issues. The expansion of BRICS and the NDB will also come with their challenges. Several members of BRICS will be cautious and not want to annoy Washington DC, but they will seek to benefit from the economic opportunities arising from entry into BRICS as well as the NDB. India, during the course of it’s BRICS Presidency has the opportunity to not only showcase its achievements in several areas – including digital payments – which can be emulated by other developing countries, but also articulate the concerns of the Global South in a nuanced manner.
Reference
The India Today, “Brics was attack on dollar: Trump claims tariffs made nations drop out of bloc” October 15, 2025
Bitcoin, “Putin Clarifies Russia’s Role in BRICS, Dismisses Anti-Dollar Accusations”, October 6, 2025. Weblink: Russia Rejects Anti-Dollar Claims as Putin Defends BRICS Trade Strategy – Economics Bitcoin News
The Indian Express, “After Trump renews tariff threat, Russia, India say no plan for common BRICS currency”, January 31, 2025. Weblink: After Trump renews tariff threat, Russia, India say no plan for common BRICS currency | World News – The Indian Express
The Times of India, “Not part of ‘financial agenda’”, India re-affirms stance on de-dollarisation in BRICS; focuses on local currency trade”, August 14, 2025. Weblink: ‘Not part of financial agenda’: India reaffirms stance on de-dollarisation in Brics; focuses on local currency trade | India News – Times of India
NDTV, ““BRICS An Attack On Dollar”: Trump Claims US Tariffs Made Nations Leave Bloc”, October 15, 2025. Weblink: “BRICS An Attack On Dollar”: Trump Claims US Tariffs Made Nations Leave Bloc
India Today, “Has India started paying for Russian oil in Chinese Yuan”, October 9, 2025. Weblink: Has India started paying for Russian oil in Chinese yuan? – India Today
Coingeek, “Did China link its CBDC to 10 ASEAN, 6 Middle Eastern countries?” Steeve Karu, April 25, 2025. Weblink: Did China link its CBDC to 10 ASEAN, 6 Middle Eastern countries?
TASS, (Russian News Agency), “Russia has switched to settlements with India, China in national currencies by 90-95%”, October 20, 2025. Weblink: Russia has switched to settlements with India, China in national currencies by 90-95% – Business & Economy – TASS
Alfitria Nefi P, “Indonesia Set to Join BRICS-Led New Development Bank”, Tempo English, July 2, 2025. Weblink: Indonesia Set to Join BRICS-Led New Development Bank – News En.tempo.co
Bhattacharjee, K, “India will give a ‘new form’ to BRICS grouping in 2026: PM Modi”, The Hindu, July 7, 2025. Weblink: India will give a ‘new form’ to BRICS grouping in 2026: PM Modi – The Hindu
The Hindu, “BRICS summit blames Israel for ‘unprecedented escalation of violence’ in Gaza Strip and expresses ‘alarm’ over the situation in Lebanon”, Kalol Chatterjee, October 23, 2024. Weblink: PM Modi for financial integration among BRICS countries – The Hindu
Authored by:
Tridivesh Singh Maini,
Assistant Professor,
Jindal School of International Affairs,
O.P. Jindal Global University,
Sonepat, Haryana
