Fears of a global trade war have risen after Donald Trump threatened to impose 100 percent tariffs on countries in the Brics group if they create a new currency to compete with the US dollar.

Trump said on his social media platform Truth Social on Saturday that he would also act if they supported another currency to replace the dollar.

“We demand a commitment from these countries not to create a new BRIC currency nor to support any other currency to replace the mighty US dollar, or else they will face 100 percent tariffs and be forced to withdraw from sales to say goodbye to the wonderful US economy,” said Trump.

“You can find another jerk. “There is no chance that the Brics countries will replace the US dollar in international trade, and any country that tries should say goodbye to America,” he added.

The warning came less than a week after Trump said he would impose tariffs on Canada, Mexico and China after becoming president.

The Brics group originally consisted of Brazil, Russia, India, China and South Africa and was supplemented by Egypt, the United Arab Emirates, Ethiopia and Iran.

Some BRICS countries have shown interest in de-dollarizing the global economy. In October, Vladimir Putin called for an alternative international payments system that could prevent the US from using the dollar as a political weapon. But others fear the consequences of breaking ties with the United States and other Western countries by moving away from the dollar, which forms the basis of world finance.

A 100 percent tariff at the U.S. border, if implemented, would dramatically increase the cost of goods from the BRICS countries, fuel U.S. inflation and destabilize global trade flows.

Stephen Innes, managing partner at SPI Asset Management, said Trump had laid down the gauntlet with a “hot proposal” of a 100 percent tariff.

“Trump’s recent election victory was greatly bolstered by his promise to impose tough tariffs on foreign imports into the United States, advocating for an aggressive 60% tariff on Chinese goods,” he said.

“This tough approach to trade reflects Trump’s broader ‘America First’ economic policy, aimed at rebalancing global trade dynamics and strengthening U.S. economic sovereignty.” As the world watches, the potential for a global trade shakeup is emerging , setting the stage for a contentious start to the Trump administration.”