As Trump threatens 100% tariffs, where India stands on Brics currency vs dollar

As Donald Trump returns to the White House in January 2025, his aggressive trade stance – the latest now being a 100 per cent tariff threat on Brics nations, including India, if they went ahead to develop their own currency to undermine the US dollar’s dominance – has already created ripples in the global economy. Trump’s 100 per cent tariff warning to Brics nations came after the bloc’s members met in Russia’s Kazan in October where they discussed boosting non-dollar transactions.

India, which shares a strong trade relationship with the US, is wary of Trump’s protectionist policies, which the President-elect argues are aimed at protecting America’s interests. India has been stressing the need to reduce dependence on the US dollar and its diverse export portfolio to the US includes critical sectors like pharmaceuticals, IT services and textiles. If Trump indeed goes ahead with his warning, it could result in higher costs for Indian exporters and their products less competitive in the US market.

At the same time, India has been cautious in its ambitious move to de-dollarise, given the fact that Washington recently became New Delhi’s leading trading partner, with bilateral trade crossing the USD 120 billion mark in FY24.