BRICS was a raging bull when Joe Biden was in the White House and threatened to uproot the US dollar. They even rewrote trade deals, abandoning the US dollar and using local currencies for payment settlements. If that wasn’t enough, the alliance made it clear that they are working on the formation of a new currency. De-dollarization was buzzing in the developing world, citing development as the only opportunity to capture power from the West.
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All it took was a threat from President Donald Trump to impose tariffs, and the mighty BRICS folded under pressure. Trump’s policies were quick, and world leaders realized that he’s not playing around either. The tariffs not only came down hard but also rattled their plans, causing a rift within the alliance. It cut apart their ideology in half, where Russia, China, and Iran are on one side, and India, South Africa, and the UAE are on the other side.
BRICS Common Currency a Distant Dream
After Trump threatened additional tariffs, BRICS members were in talks with the White House to reduce customs on their behalf. The idea of launching a BRICS currency has taken a back seat with little to no progress on the formation. All the alliance did was manage to create a mock-up bill, which has no value in the real world. The mock-up bill was displayed by Russian President Vladimir Putin at the 2024 summit in Kazan.
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To everyone’s surprise, BRICS did not mention de-dollarization and the formation of a new currency in the 2025 summit. The fear of Trump’s retaliation remains high as he is capable of wreaking havoc on their economies. The stakes are high, and emerging economies don’t want to lose, as they’ve come a long way in strengthening their GDPs. The alliance has failed to survive the litmus test initiated by Trump and folded under pressure.