The BRICS alliance was raging fire against the US dollar before Trump took office. They were hellbent on uprooting the US dollar and making local currencies the world’s reserve. The goal was serious after the White House imposed sanctions on Russia in 2022 for invading Ukraine. Talks about the bloc launching a new currency to challenge the US dollar grew. Several leaders agreed to the formation of a BRICS currency to settle cross-border trade and transactions.
The favor reached its peak as de-dollarization rapidly spread around the world. Developing countries found a voice in BRICS that dared to speak on their behalf to the West. But that was under the Biden administration, where leaders saw the US as a weak nation. Under Trump, BRICS has cooled down its rhetoric as it fears further tariffs, and its voices have been silenced.
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Trump Appeasement Syndrome: BRICS Takes the Bait
BRICS leaders are now appealing to Trump to lower their tariffs and allow the normal flow of goods. During the July summit in Rio de Janeiro, the world leaders barely mentioned de-dollarization or the formation of a new currency. While they did express dissatisfaction with the policies of the White House, they were cautious enough not to upset the US President.
After the summit, BRICS members India, Brazil, and South Africa began cozying up to Trump. India went ahead, embracing the US dollar and openly rejecting de-dollarization. They even threw cold water on the prospects of an upcoming BRICS currency. “Imagine sharing a currency with China,” said Union Commerce Minister Piyush Goyal.
While some say BRICS is scared of Trump, others claim they are only playing their cards right. After four years, they would get back to the idea of dethroning the US dollar and make local currencies reign supreme. However, if the US gets a new leader similar to Biden, chances of de-dollarization re-emerging are high.