Amid the ongoing challenge of the West by BRICS currencies, Donald Trump’s victory in the 2024 presidential election has certainly changed things for the de-dollarization outlook. The outcome led to a surge for the greenback, with the currency having its best day in eight years.
The bloc has long stood opposed to the US dollar, as it sought to reshape global economics. That pursuit is set to meet a new obstacle in Trump. Throughout his reelection campaign, he has consistently discussed the need to strengthen the currency. Moreover, he could provide policies that greatly challenge nations that look to follow BRICS pursuits.
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BRICS Meet New Obstacle as Donald Trump Vows to Save the US Dollar
Since 2022, the BRICS alliance has embraced a de-dollarization initiative. Driven by Western sanctions against Russia for its invasion of Ukraine, the bloc has sought to lessen international reliance on the greenback. For most of the last two years, that ideology has enjoyed notable growth.
That may have all changed on Tuesday. Indeed, the BRICS have taken on a new challenger, with Donald Trump’s 2024 presidential election win likely bringing the hammer down on global de-dollarization efforts. Throughout his campaign, he was not shy about his stance on the growing movement.
“I’ll say, ‘You leave the dollar, you’re not doing business with the United States,” Trump said at a Wisconsin rally. “Because we’re going to put a 100% tariff on your goods,” he added. That wasn’t an isolated incident. Trump has continued to champion the necessity of keeping the greenback as the world’s currency.
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“If we lost the dollar as the world’s currency, I think that would be the equivalent of losing a war,” he told the Economic Club at a gathering in New York. That America First mentality has already driven record reactions to the presidency.
Both the Dow Jones Industrial Index and S&P 500 saw record highs to start the day. Additionally, the US dollar surged, with the dollar index rising as much as 1.8%, its biggest single-day gain since June 2016. Things get even more difficult for the BRICS bloc with a Republican sweep.
The BRICS bloc has embraced alternative currency methods for much of the last year, but they may also be eyeing a change of heart. Earlier this year, Trump hinted he would consider lifting sanctions, encouraging the use of the dollar. It will be interesting to see how the bloc responds if that ends up being the case.