Nournews: This move highlights the ongoing U.S. struggle with economic multilateralism. By imposing tariffs, Trump aims to discourage countries from moving away from the U.S. dollar. However, with nine members and growing interest from other nations, BRICS has reached a level that can no longer be ignored. Is this alliance truly challenging U.S. economic dominance, or is it just a temporary threat?
Trump’s recent remarks reflect U.S. concerns over the weakening of its economic unilateralism. He warned that any country abandoning the dollar will face heavy tariffs. However, BRICS, with its expanding membership and independent financial policies, is emerging as a key player in the global economy. At its recent summit in Kazan, the bloc approved major decisions such as developing an independent payment system, increasing trade in local currencies, and establishing a new development bank. These steps indicate that BRICS is not only reducing its reliance on the dollar but also becoming a model for other nations. Therefore, rather than showcasing U.S. strength, Trump’s threats highlight BRICS’s success in shaping a new, multipolar economic order.
BRICS and reducing dollar dependency
One of BRICS’s main goals is to decrease reliance on the U.S. dollar in global trade. Member nations recognize that the dollar’s dominance allows the U.S. to impose economic sanctions and exert financial pressure. In response, they have been working to strengthen their national currencies, develop alternative payment systems, and promote independent economic cooperation.
The recent Kazan summit emphasized the creation of an independent payment system called the “BRICS Bridge.” This system directly challenges the dollar by enabling member countries to trade in their local currencies. This strategy is evident in bilateral trade agreements, such as those between Iran and Russia or China and Russia, as well as broader efforts to establish a common BRICS currency.
The growing trade volume among BRICS members further supports this goal. For instance, China announced that its trade with other BRICS nations reached over $653 billion in 2024. This trend not only weakens the dollar’s influence but also lays the foundation for a more multipolar financial system.
BRICS’s role in the global economy
BRICS members complement each other in terms of natural resources and industrial capabilities. Iran and Russia are key energy suppliers, while China and India serve as the group’s industrial hubs. Cooperation in sectors such as steel, chemicals, and textiles strengthens BRICS’s position in the global economy. With over 20% of total global trade, the bloc has become an influential force.
BRICS’s efforts to counter U.S. economic dominance
In recent years, BRICS has taken significant steps to challenge U.S. economic hegemony. One of the most important initiatives was the creation of the New Development Bank as an alternative to the International Monetary Fund (IMF) and the World Bank. This bank provides developing nations with financial support without the political conditions often attached to Western loans.
Additionally, financial agreements among BRICS members have gradually reduced the dollar’s role in trade. In parallel, the bloc is working to establish alternatives to the SWIFT payment system. Since 2012 and 2018, Russia and China have developed their own domestic systems, and now the BRICS Bridge platform is emerging as a viable global alternative. This platform could facilitate trade among members, reduce the impact of Western sanctions, and enhance economic independence for developing nations.
These actions demonstrate BRICS’s practical approach to establishing a new financial order beyond U.S. control. Recent decisions at the Kazan summit, such as expanding currency swap agreements, not only help member countries during financial crises but also gradually diminish the dollar’s role in the global economy.
Trump’s threats against BRICS are less about U.S. economic strength and more about its fear of a shifting financial order. BRICS has taken concrete steps to reduce dollar dominance while offering a successful economic model for other nations. The rise in trade among members, the development of an independent financial system, and growing interest in joining BRICS all signal that the world is moving toward a new economic structure. As this trend strengthens, U.S. unilateralism will face increasing challenges, and BRICS could become a powerful and independent economic force in the future.
NOURNEWS