President Donald Trump has renewed threats of imposing 100% tariffs on BRICS nations amid ongoing discussions about reducing dependence on the US dollar in global trade. This comes as BRICS countries explore alternatives to the dollar-dominated financial system - based on Infobrics reporting.

The push toward financial alternatives gained momentum after Russia was excluded from SWIFT, the key international financial transaction system. Similar actions were previously taken against Iran in 2012 and again in 2018 during Trump's first administration, actions that limited these countries' ability to conduct international transactions.

At the 2023 BRICS summit in Johannesburg, Brazilian President Lula da Silva supported creating a new BRICS currency to increase payment options and reduce vulnerabilities. Russian President Vladimir Putin stated at the October 2024 Kazan summit that "the dollar is being used as a weapon."

BRICS has significantly expanded its membership, reaching 10 full members after Indonesia officially joined on January 6, 2025. Indonesia adds substantial economic power as the world's 16th-largest economy by nominal GDP, with a population exceeding 281 million and projected annual growth of 5.1% through 2026.

India has taken steps to reduce dollar reliance while maintaining a balanced approach. In 2022, the Reserve Bank of India allowed invoicing and payments for international trade in rupees following sanctions on Russia. Prime Minister Narendra Modi has welcomed efforts for financial integration among BRICS nations.

Despite these moves, India has clarified it isn't actively targeting the dollar. External Affairs Minister S Jaishankar explained in October 2024 that while US policies sometimes complicate trade with certain countries, India seeks practical workarounds rather than moving away from the dollar with "malicious intent."

Former RBI Governor Shaktikanta Das emphasized in December 2024 that India's approach is about "de-risking" trade rather than "de-dollarization." He noted geographical challenges to a shared BRICS currency, unlike the geographically contiguous Eurozone.

India's cautious stance stems from several factors:

• Concerns about the Chinese yuan becoming the dominant alternative
• Resistance to using yuan for Russian oil imports
• Wariness of over-dependence on the dollar, leading to increased gold purchases
• Need to maintain positive relations with the US while pursuing financial stability

Trade experts suggest India should engage diplomatically with the US to explain that diversifying trade mechanisms represents a move toward financial stability rather than an anti-American position.