BRICS fading US dollar has become something of a major talking point right now, and economist Jeffrey Sachs recently broke down exactly how this shift is actually happening. The way US power decline is unfolding stems from America kind of isolating itself, while dollar dominance fading picks up speed through BRICS nations working together to escape what Brazilian President Lula called living under the “thumb of a US empire.” At the same time, this global currency shift is being driven by countries that are tired of Washington’s financial control, and also by the growing economic weight of BRICS economies that now represent nearly half the world’s population.
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How BRICS Economic Influence and Sachs Explain Dollar Dominance Fading
Washington’s Grip on Financial Institutions Is Weakening
Sachs pointed out that American institutions sit really close to the White House, which shows how much control Washington has had. He noted the IMF and World Bank remain “American dominated institutions” even though they’re supposed to be multilateral. The geographic setup tells a pretty clear story—Sachs explained it’s “only two blocks from the president’s office to tell the IMF what to do.” He even added that “you don’t even need to text it” because everything sits so close along Pennsylvania Avenue.
But here’s the thing—Sachs made clear that this influence is changing. He stated the US can still “turn on and off the spigot for countries that are vulnerable,” yet he emphasized something important about where things are going. Washington wields power through these institutions, but that power is fading, and BRICS fading US dollar efforts are a big reason why this is happening right now.
BRICS Pushes Back Against American Financial Control
The global currency shift really picked up when President Lula hosted the BRICS summit and pushed back against Trump’s tariffs. Sachs recounted how Lula made it clear that Brazil wasn’t going to just accept American pressure anymore. President Lula said during the summit that “we don’t need an emperor and we’re not going to succumb to this kind of pressure,” which was a direct response to Trump putting tariffs on Brazil because of a domestic court issue.
The BRICS bloc right now includes Brazil, Russia, India, China, South Africa, along with Egypt, Ethiopia, United Arab Emirates, Iran, and also Indonesia. According to Sachs, these ten BRICS countries control about 46% of the world’s population and around 41% of global GDP. He put it pretty bluntly when he said they “can look at the G7 and say, ‘Who are you?‘” This economic weight is what’s driving BRICS fading US dollar momentum forward.
BRICS Was Set Up to Hurt Us
Trump himself acknowledged the threat during his July 2025 cabinet meeting. He stated that “BRICS was set up to hurt us, BRICS was set up to degenerate our dollar and take our dollar…off as the standard.” In response to these concerns, Trump threatened BRICS members with 100% tariffs unless they committed to never creating a new BRICS currency or backing any other currency to replace the US dollar. This kind of aggressive stance was met with resistance from BRICS leaders.
Brazilian President Lula responded firmly at the Rio summit, saying “we don’t want an emperor, we are sovereign countries” and adding that “it’s not right for a president of a country the size of the United States to threaten the world online.” The pushback shows how Washington’s own heavy-handed tactics accelerate US power decline, pushing countries toward alternatives rather than keeping them dependent on the dollar.
Trade Battles Show American Weakness
Sachs detailed some recent trade confrontations that actually exposed vulnerabilities in the US position. When Trump threatened China with 100% tariffs, China didn’t back down—they immediately countered with 120% tariffs of their own. Then things escalated further when the US tried to restrict advanced chip exports to China, and China responded by threatening to cut off supplies of rare earth magnets.
These materials turned out to be critical. Sachs explained they’re “absolutely essential for all manufacturing, for automotive, for military and so on.” Since China makes these rare earth magnets and the US doesn’t, America had to back down pretty quickly. Sachs said “the US within a half an hour said, ‘we surrender,'” which shows how actual economic dependencies limit American leverage in these disputes and connect to dollar dominance fading.
America Steps Back While the World Keeps Trading
One of Sachs’s main arguments is that US power decline reflects choices America is making rather than the world falling apart. He was pretty clear about this, stating that “the world is not fragmenting. The US is isolating itself.” Sachs described how America “doesn’t even go to the parties anymore” and instead just puts on tariffs and restrictions.
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The economist characterized what’s happening as “the US and Europe are having a tantrum” while “the world is really not fragmenting. It’s remaining open and it’s trading.” This perspective suggests that BRICS fading US dollar initiatives are succeeding not just because BRICS countries are strong, but also because America is choosing isolation over cooperation at the same time.
Global Leaders Challenge American Threats
President Lula reinforced this view at the July 2025 BRICS summit when he told the gathered leaders and media that “we don’t want an emperor, we are sovereign countries” and emphasized that “it’s not right for a president of a country the size of the United States to threaten the world online.” South African President Cyril Ramaphosa also weighed in, telling journalists at the summit that “the powerful should not seek vengeance against those working for good in the world.”
Kremlin spokesperson Dmitry Peskov responded to Trump’s tariff threats by pointing out that “more and more countries are switching to the use of national currencies in their trade and foreign economic activities.” He went further, saying that “if the US uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies.” This suggests that American threats might actually be accelerating the very thing they’re trying to prevent—which is the global currency shift away from dollar dependence.
Sachs concluded that what we’re seeing is power that’s been dominant for decades now starting to fade because BRICS nations are offering alternatives and also because Washington keeps using economic weapons that push countries to find other options. The combination of BRICS economic influence and US isolation means dollar dominance fading will likely continue, even as America tries to use tariffs and threats to maintain its position. Right now, the trend seems clear—BRICS fading US dollar efforts are gaining ground while US power decline accelerates through America’s own actions.