Aggressive tariff policies from former President Donald Trump have not only escalated global trade tensions but also fueled BRICS’ push for stronger economic ties, reduced dependence on the U.S. dollar, and deeper political cooperation.
According to Germany’s DW News, as geopolitical rivalries and global trade competition intensify, experts are asking: Did Trump’s trade strategy unintentionally make BRICS more united?
Analysts argue that the high tariffs imposed on BRICS members far exceeded those on other nations, creating a “common cause” for the bloc to reduce reliance on the United States and its currency.
Key figures include:
China, BRICS’ largest economy, faces potential tariffs of up to 145% without a deal with Washington.
Brazil and India were hit with duties of 50%, partly due to India’s purchases of discounted Russian oil.
South Africa faces a 30% tariff, and newer members like Egypt could also face hikes due to their alignment with BRICS.
In his second term, Trump repeatedly warned of additional sanctions on countries he labeled as pursuing “anti-American policies”—a clear reference to BRICS challenging U.S. global dominance.
These tariffs have fueled shared resentment within BRICS, accelerating efforts to settle trade in local currencies and reduce dependence on the U.S. dollar. Additionally, BRICS central banks have boosted gold purchases, signaling a shift toward alternative financial systems.
Max Boot, senior fellow at the Council on Foreign Relations, warned that Trump is “undermining U.S. power by lumping together America’s friends with its adversaries,” referring to how India, Brazil, and South Africa are strengthening ties with China and Russia.
This growing solidarity will be showcased at the Shanghai Cooperation Organization (SCO) Summit in Tianjin, China, on August 31, where Chinese President Xi Jinping will host Indian Prime Minister Narendra Modi, Russian President Vladimir Putin, and leaders from over 20 Global South nations. This marks Modi’s first visit to China in seven years.
Ahead of the summit, the Kremlin has urged China, India, and Russia to hold their first trilateral talks in six years, aiming to mend longstanding tensions—particularly between New Delhi and Beijing—while consolidating BRICS’ strategic core.
India–China: restored direct flights, eased visa restrictions, and launched rare earth trade talks—critical for clean energy, EVs, and defense tech.
Brazil–China: reaffirmed trade ties; China accounts for 26% of Brazil’s exports, double the U.S. share.
Russia–China: over 90% of bilateral trade is now settled in yuan and rubles, underscoring their financial decoupling from the dollar.
South Africa: remains committed to BRICS cooperation on governance reform, technology, agriculture, and business exchange—despite U.S. pressure.
BRICS has grown from five to ten members, with Saudi Arabia still considering entry. However, differing national interests could limit full political alignment. Experts say BRICS now focuses on practical cooperation in trade, finance, and supply chains rather than perfect unity.
While intra-BRICS trade is growing faster than trade with G7 nations, it remains heavily concentrated in hydrocarbons. A Boston Consulting Group study projects BRICS may move toward a bloc-wide free trade agreement, removal of anti-dumping measures, and more intra-bloc investments.
The proposal for a common BRICS currency remains on hold, but alternative settlement systems using yuan, ruble, and rupee are expanding.
Ajay Srivastava, founder of the Global Trade Research Initiative, noted:
“The U.S. dollar will stay dominant for years, but parallel payment networks will gradually erode its monopoly.”
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