The ongoing geopolitical tensions between the West and the Global South have reached a fever pitch. With a trade war brewing, the US has embraced aggressive economic policy in order to deter mass de-dollarization that has increased over the last year. However, “BRICS is Dead,” US President Donald Trump has declared due to his 100% tariff warning; is he right?
Trump is entering just his second month back in the Oval Office while he is already off and running with economic policy targeting global challengers. Are his efforts working to ensure the status of the US dollar? Or, are they simply working to embolden the bloc’s resolve, and justify its efforts to de-dollarize in the first place?
Also Read: BRICS Statment Pushes De-Dollarization, Despite Trump Warning
Trump Declares that BRICS is Dead After 100% Tariff Warning: But Is He Right?
On the campaign trail throughout the last year, Donald Trump was adamant in his defense of the US dollar. At one rally, he assured that the greenback losing its status as a global reserve asset would be akin to the country losing a war. After winning the presidential election in November, he wasted no time in combating efforts threatening the currency’s position.
This led the returning president to threaten 100% tariffs on the nations that are engaging in those de-dollarization activities, primarily targeting one economic alliance. In reassuring that threat, the BRICS group was proclaimed dead by US President Trump. But is he right?
The global south doesn’t seem to adhere to that same belief. A strategic affairs expert from Jawaharlal Nehru University in New Delhi, Dr. Aparaajity Pandey, explained why the sentiment may not be rooted in any real fact.
Also Read: BRICS: US Trade War, Tariffs Has Global Markets Preparing For The Worst
“It’s important not to take Trump’s words at face value. His intention is clearly to prevent the Yuan, or any other currency, from replacing the US dollar as the dominant currency in international trade,” they said according to the Financial Express. However, that goal has yet to extinguish the resolve of the BRICS group.
They have stood firm, with all sides continuing to embrace the bloc’s role. Specifically, they are seeking to continue building economic cooperation that embraces local currency settlements. This would then fortify the growing economy in the region. It appears as though Trump.
“BRICS is about securing the economic interests of non-Western countries,” one Indian foreign policy expert said. Its presence offers nations “access to strategic markets, including Central Asia, the Middle East, and Africa.” It does not appear as though any of the ariticpationg natiosn are ready to relinquish that, especially as de-dollarization is not the goal of the group, to begin with.