India says de-dollarisation is not part of its financial agenda amid Trump’s tariffs

Amid the brewing tensions with US President Donald Trump’s administration, India made it clear that de-dollarisation is not part of its financial agenda. On Thursday, the Ministry of External Affairs (MEA) dismissed suggestions that India is working towards de-dollarisation within BRICS nations.

MEA spokesperson Randhir Jaiswal made it clear that such a move is “not part of India’s financial agenda”. “We have made our position very clear on this issue earlier as well. De-dollarisation is not part of India’s financial agenda,” MEA spokesperson Randhir Jaiswal said at the weekly media briefing.

Jaiswal’s remarks were in response to questions about Brazilian President Luiz Inacio Lula da Silva’s statement that BRICS nations may consider an alternative currency amid tension with the United States over steep tariffs on the group. It is pertinent to note that Trump has opposed the idea of de-dollarisation and often issued threats of dire consequences.

India-US ties have deteriorated significantly after Trump announced nearly 50 per cent tariffs on Indian goods. The White House argued that the tariffs were imposed because India purchased Russian oil amid the ongoing Ukraine war, with senior officials in the Trump administration accusing India of helping Russia in the conflict.

Brazil pushes for de-dollarisation

Jaiswal’s remarks were in response to Lula’s push for creating a trade currency that can be used among Brics nations. Explaining his position, Lula insisted that the idea should be tested.

“We can discuss in the BRICS. There is a need to have a trade currency between us and the BRICS. I do not reject it because we must test; if the testing fails, then I would be wrong. But someone has to convince me that I am wrong,” the Brazilian leader exclaimed.

Lula is scheduled to visit India in January next year. When asked if Prime Minister Narendra Modi had invited Lula following their recent phone conversation, Jaisawal said, “We had gone to Rio to attend the BRICS summit. We also paid a state visit to Brasilia. And at that time, the Prime Minister, as is normal in bilateral ties, invited President Lula to visit India at an appropriate time.”

It is pertinent to note that Trump has also announced a 50 per cent tariff on imports from Brazil starting August 1, while calling the trial of former Brazilian President Jair Bolsonaro a “witch hunt” that “should not take place.” When it comes to its own challenges, India has maintained that it will continue engaging with BRICS members on issues of shared interest while safeguarding its economic and strategic priorities.

“India is a member of the BRICS group, and we continue to remain in touch with member countries to discuss issues of shared interest,” the MEA spokesperson said in the Thursday briefing.