It's 2025, and the global stage looks vastly different from a decade ago. Yet, some are still clinging to outdated tactics, believing that threats of tariffs and sanctions can sway the world.
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,\" he declared.
However, the Chinese Ministry of Foreign Affairs responded swiftly, emphasizing that BRICS is about fostering cooperation and shared prosperity, not confrontation. The truth is, the world is no longer buying into one-currency dominance or sanction-fueled pressure.
Consider Russia, for example. When faced with an avalanche of sanctions from the West in 2014 and 2022, many predicted an economic collapse. Instead, Russia built its own financial lifeboats. The System for Transfer of Financial Messages (SPFS) emerged as a homegrown alternative to SWIFT, and the Mir payment card began to fill the roles of Visa and Mastercard. These initiatives insulated the Russian economy and laid the groundwork for deeper financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, without relying on Western-dominated systems.
Similarly, when the U.S. restricted Türkiye's access to U.S. technology and equipment, including F-35 jets and armed unmanned aerial vehicles, Türkiye responded by developing its own resources. It now produces some of this equipment domestically and has begun exporting to Middle Eastern and African nations.
The resilience of Russia and Türkiye is just the tip of the iceberg. An increasing number of nations are seeking a more equitable world order. The G20 Summit in Brazil last year marked a historic moment with the African Union attending as a full member of the bloc for the first time. Today, the G20 represents a new vision beyond a club of economically powerful countries.
BRICS nations have also been rewriting the rules of global trade. They've turned to their own currencies for commerce, reducing dependence on the U.S. dollar. Brazil and China now trade in their national currencies, a move mirrored by India and its regional partners. The BRICS New Development Bank has ramped up efforts to finance projects in local currencies, offering a fresh approach to international funding without relying on Western institutions. Moreover, efforts are underway to create a BRICS blockchain-based payment system.
This shift isn't about making a political statement—it's about pragmatism. The world has watched the dollar-dominated system stumble repeatedly, with each crisis rippling across continents. From the 2008 financial meltdown to the pandemic-induced global recession, over-reliance on the dollar has proven to be a risky bet.
As nations continue to seek stability and fairness in the global economic landscape, threats and sanctions are losing their effectiveness. The era of one-currency dominance is waning, and a multipolar financial world is emerging.
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Why threats, sanctions and one-currency dominance are past their prime
cgtn.com
