How the US is trying to kill BRICs

A Landmark Economic Moment: U.S. Tariffs and the BRICS Challenge

For the first time in history, a U.S. president has proposed 100% tariffs on nine countries simultaneously. Former President Donald Trump announced that nations aligned with the BRICS coalition, or those threatening the dominance of the U.S. dollar, could face these punitive measures.

This unprecedented declaration raises critical questions: What are the underlying dynamics of BRICS, and how could these proposed tariffs reshape global economics?

A Closer Look at BRICS

The BRICS bloc—initially composed of Brazil, Russia, India, China, and South Africa—has been a central force in the global economy since 2011. However, in a significant move earlier this year, four new nations formally joined: Iran, the United Arab Emirates, Ethiopia, and Egypt.

This expansion marked the first addition of new members in over a decade, signaling an increasing desire to challenge the existing global economic order.

Shifting Currency Dynamics

The BRICS coalition has made its intentions clear: reducing reliance on the U.S. dollar as the global reserve currency. This mission gained traction in early 2023, as Saudi Arabia struck a major energy deal worth 83.7 billion Chinese yuan.

Soon after, Saudi Arabia publicly considered accepting yuan for oil sales—an unprecedented move for one of the world’s largest oil exporters and a significant step toward de-dollarization.

Russia’s Role in the Transition

Russia has played a pivotal role in the shift away from dollar-based trade. Facing economic sanctions due to the conflict in Ukraine, the nation increasingly turned to the yuan for settling international transactions.

The results have been striking. Over two years, trade volumes between Russia and China surged by more than 60%, reaching $240 billion by the close of 2023.

The Tariff Proposal’s Potential Fallout

Imposing 100% tariffs on BRICS member nations—or those expressing interest in joining—would be a game-changing economic move. This year alone, 34 additional countries have shown interest in becoming part of BRICS, illustrating the bloc’s growing influence.

Such tariffs could have widespread implications, from disrupting trade flows to realigning international partnerships. Additionally, this move could accelerate the push for alternatives to the U.S. dollar, altering the dynamics of global commerce.

The Stakes Are Higher Than Ever

The proposed tariffs reflect a broader struggle for economic dominance in an increasingly multipolar world. Whether these threats are enacted or remain as posturing, the potential for a seismic shift in global trade and currency dynamics cannot be ignored.

As the BRICS coalition continues to challenge the traditional economic order, the world is at a critical juncture that could redefine international relations and economic power for decades to come.

Shaun

Founder

With over a decade of expertise spanning investment advisory, investment banking analysis, oil trading, and financial advisory roles, RealisedGains is committed to empowering retail investors to achieve lasting financial well-being. By delivering meticulously curated investment insights and educational programs, RealisedGains equips individuals with the knowledge and tools to make sophisticated, informed financial decisions.

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Shaun

Founder, Analyst

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