It's 2025, and the global stage looks vastly different from a decade ago. Yet, some nations continue to rely on outdated tactics, believing that threats of tariffs and sanctions can influence global dynamics. On his first day in office, recently sworn-in U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they continue their de-dollarization efforts.
\"As a BRICS nation… they'll have a 100 percent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately,\" Trump declared.
The Chinese Ministry of Foreign Affairs responded swiftly, emphasizing that BRICS is not about confrontation but about fostering cooperation and shared prosperity. \"The world is no longer buying into one-currency dominance or sanction-fueled pressure,\" a ministry spokesperson stated.
Russia serves as a prime example of resilience in the face of sanctions. When confronted with an avalanche of sanctions from the West in 2014 and 2022, many predicted an economic collapse. Instead, Russia developed its own financial systems, including the System for Transfer of Financial Messages (SPFS) and the Mir payment card, which function as alternatives to SWIFT and Western payment networks. These initiatives have insulated the Russian economy and strengthened financial ties with non-Western allies such as Türkiye, Kazakhstan, and nations in the Middle East.
Similarly, Türkiye faced restrictions from the U.S. on access to technology and equipment, including F-35 jets and armed unmanned aerial vehicles. In response, Türkiye invested in developing its own resources, producing equipment domestically, and even exporting to Middle Eastern and African nations.
These examples highlight a broader global trend. More nations are seeking a more equitable world order, moving away from reliance on any single currency or dominant economic power. Last year's G20 Summit in Brazil marked a historic moment, with the African Union attending as a full member for the first time. This expanded G20 represents a new vision for global cooperation and inclusivity.
BRICS nations are also redefining global trade by turning to their own currencies and reducing dependence on the U.S. dollar. Brazil and China now conduct trade in their national currencies, a move mirrored by India and its regional partners. The BRICS New Development Bank is increasing efforts to finance projects in local currencies, promoting international funding without relying on Western institutions. Additionally, efforts are underway to create a BRICS blockchain-based payment system.
This shift is not about making a political statement but stems from pragmatism. The world has witnessed the vulnerabilities of a dollar-dominated system, from the 2008 financial crisis to the pandemic-induced global recession. Over-reliance on the dollar has proven to be a risky bet.
As nations like Russia and Türkiye forge their own paths, it becomes evident that threats, sanctions, and one-currency dominance are past their prime. The global community is embracing diversification and collaboration, seeking stability and prosperity beyond traditional power structures.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
cgtn.com
