Why is Donald Trump so afraid of the BRICS countries?

US President Donald Trump is taking an even tougher stance against the BRICS countries , which include Brazil , Russia , India , China , and South Africa , warning that their efforts to undermine the dominance of the US dollar threaten America's economic supremacy.

Just as the leaders of the BRICS countries were gathering for their annual summit in Rio de Janeiro, Trump reiterated on Sunday that he would impose an additional 10 percent tariff on any country that supports the group's "anti-American policies," increasing pressure on top of existing and threatened trade tariffs.

The Trump administration's 90-day pause on higher tariffs expires on Wednesday, and according to US media reports, dozens of countries have been notified in writing of their new US import tariffs.

While his latest threat to the BRICS countries represents a departure from his January threat to impose 100 percent tariffs on countries that "play with the dollar," Trump continues to emphasize his desire to secure the dollar's status as the world's reserve currency.

Over the past decade, the BRICS bloc has grown from four to eleven members , with Saudi Arabia listed as a member but not yet officially confirmed. The alliance also has nine partner countries, with dozens of others lined up to join.

The association of states, which is touted as China's alternative to the industrialized nations of the G7 (Group of Seven), now represents a quarter of the global economy and almost half of the world's population

"Trump has reason to be concerned," Alicia Garcia-Herrero, senior fellow at the Brussels-based think tank Bruegel, told DW. "The BRICS are clearly anti-Western. Part of their mantra is to change the global order."

A move away from the dollar, but no real alternative

The BRICS countries are committed to the interests of the Global South and are intensifying their efforts to reduce dependence on the US dollar , for example through trade in local currencies.

Under pressure from Western sanctions and tariffs, Russia and China are leading the way in de-dollarization, conducting energy transactions in rubles and yuan, while India has been paying for Russian oil in yuan, rubles, and the UAE dirham since 2023.

Larger ambitions—such as a gold-backed common currency, the so-called "UNIT"—have stalled due to internal differences. India, fearing the dominance of the Chinese yuan, rejected the plan. Brazil, host of the 2025 summit, also prefers trading in local currencies to a single currency.

"India, along with Brazil, is trying to counterbalance the anti-Western messages of the BRICS. China dominates the alliance, and Russia plays an important role," said Garcia-Herrero, who is also chief economist for Asia-Pacific at the French investment bank Natixis.

Of the approximately 33 trillion US dollars in global trade volume in 2024, trade between the BRICS countries accounted for just three percent, or about one trillion US dollars, according to the BRICS website.

"The majority of global trade is still conducted in dollars and other traditional currencies," economist Herbert Poenisch told DW. "It will take a lot to end this dominance."

The US currency remains the king currency and is still used for 90 percent of global transactions, while 59 percent of global foreign exchange reserves are invested in US dollars.

According to economists, de-dollarization is a long way off because China tightly regulates the yuan through capital controls, the Russian ruble fluctuates too much, and several BRICS members are unwilling to abandon the dollar.

BRICS is growing fast but making little progress

With the recent accession of Egypt , Ethiopia , Iran , the United Arab Emirates and Indonesia , and nearly a dozen other new partner countries such as Algeria and Malaysia in tow, the BRICS are clearly on a rapid growth trajectory.

Many countries are attracted to the BRICS for pragmatic reasons, as they seek a multipolar world order less dominated by the West. They believe the BRICS will amplify their own voice on the world stage.

Those fearful of Western sanctions , such as Iran and Russia, are counting on the BRICS as a lifeline to protect their economies through new financial systems like BRICS Pay or Bridge . Others, including Ethiopia and Egypt, are seeking development financing free of the political strings often attached to Western aid. However, Trump's latest threat may give them pause.

"Suddenly, being part of the BRICS comes at a price," Garcia-Herrero told DW. "This will likely discourage some, especially the poorer countries."

But despite growing membership and lofty promises, the BRICS struggle to translate their ambitions into action. The alliance lacks institutional cohesion, and deep geopolitical divides—especially between India and China—undermine unity.

Aside from the common currency, efforts to build alternative financial systems have also been slow and fragmented. Even the New Development Bank (NDB), touted as a competitor to the World Bank , has failed to deliver what was promised. The NDB has so far lent only $33 billion, while the World Bank has $1 trillion.

Expansion alone does not equal influence, and without a clear strategic vision, greater coordination, and tangible alternatives, the BRICS risk becoming a symbolic club rather than a transformative force.

"Trump shouldn't worry," economist Herbert Poenisch told DW. "BRICS is still in its early stages, and bridging the many differences in priorities will be a major challenge."

Ideological differences are difficult to reconcile

Despite their many differences, the BRICS leaders took a clear stance on Trump's tariffs, criticizing unilateral sanctions and protectionist tariffs without directly naming him in their opening communiqué released on Sunday. The alliance warned that such measures "distort global trade" and violate WTO rules .

In addition to their role as an economic forum, the heads of state and government emphasized cooperation in the areas of artificial intelligence (AI), climate change and global health, while also denouncing global conflicts in their communiqué.

The BRICS leaders called last month's attacks on Iran a "violation of international law," without mentioning the United States or Israel . They also reiterated their support for Palestinian statehood and condemned the use of hunger as a weapon in the Gaza Strip .

The statement did not directly criticize Russia, reflecting the cautious approach toward the BRICS member. The attacks by Ukraine However, attacks on Russian infrastructure were condemned and a call was made for a "sustainable peace solution".

The heads of state and government of the BRICS countries also reaffirmed their commitment to multilateralism, international law and reforms in the United Nations Security Council , including permanent seats for Brazil, India and one African country.

The article first appeared in English.