Trump's tariff strategy may be driving countries toward deeper BRICS cooperation

President Donald Trump has openly threatened a 10 percent tariff on any country that aligns with BRICS and has already levied duties on members like Brazil, India and China. His administration’s use of tariffs and sanctions signals that nations challenging U.S. economic power will face costs, which in turn gives BRICS countries a shared incentive to develop alternatives to the U.S.-centric financial system. The bloc, now comprising Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates, is experimenting with bilateral currency settlements, linking payment networks, and expanding the New Development Bank’s lending in local currencies.

Although the International Monetary Fund reports the dollar still holds 57.1 percent of global reserves, these incremental measures lower the expense of avoiding U.S. markets. Trump’s policies may therefore accelerate the construction of non-dollar trade and finance channels, even as most members balance ties with both Washington and Beijing.