‘Like losing a world war’: Donald Trump sounds alarm on dollar’s global role amid rising threats

Donald Trump has sounded a loud alarm over the U.S. dollar’s global dominance, warning that losing its reserve currency status would be “like losing a world war”—as BRICS nations step up efforts to build financial alternatives.

In a statement, the US president claimed the dollar’s decline would fundamentally reshape America. “We would not be the same country any longer,” Trump said. He vowed aggressive tariffs—up to 10%—on BRICS nations, which include Brazil, Russia, India, China, and South Africa, if they continue pushing for de-dollarization.

Calling BRICS a “little group fading fast,” Trump dismissed the bloc’s efforts to rival the dollar. Yet behind the rhetoric, BRICS is actively developing tools to bypass Western financial systems. That includes alternatives to the SWIFT payment network and discussions around a commodity-backed BRICS currency.

While no unified currency has emerged, BRICS expansion into Africa, Asia, and Latin America has shifted increasing volumes of trade out of the dollar’s reach. Some central banks are trimming their holdings of U.S. Treasuries and boosting gold reserves.

This comes as the dollar faces its worst slump in decades, falling sharply against major currencies like the euro, peso, and yen. Some energy contracts are now settled in yuan or euros, not dollars—a trend that was rare just a few years ago.

Still, the dollar remains entrenched. It dominates global reserves and trade, with no realistic challenger on the horizon. Even within BRICS, India has distanced itself from the idea of a joint currency and expressed reluctance toward de-dollarization.

Financial analysts caution that while the dollar’s supremacy is slowly eroding, talk of an imminent collapse is premature. “The dollar isn’t going anywhere fast,” one global economist said. “But the ground is clearly shifting.”