In 2025, the global stage has dramatically evolved, rendering outdated tactics ineffective. Despite this, some leaders continue to rely on threats of tariffs and sanctions, hoping to influence the world economy.
On his first day in office, newly sworn-in U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they persist with 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.
The Chinese Ministry of Foreign Affairs responded, emphasizing that BRICS is about fostering cooperation and shared prosperity, not confrontation. The global community is increasingly resistant to one-currency dominance and sanction-fueled pressure.
Russia serves as a prime example. Facing extensive sanctions from the West in 2014 and 2022, many anticipated an economic collapse. Instead, Russia developed its own financial systems. The System for Transfer of Financial Messages (SPFS) emerged as an alternative to SWIFT, and the Mir payment card system took on roles similar to Visa and Mastercard. These initiatives insulated Russia's economy and strengthened financial ties with non-Western allies without reliance on Western-dominated systems.
Similarly, Türkiye faced restrictions on access to U.S. technology and equipment, including F-35 jets and unmanned aerial vehicles. In response, Türkiye began producing its own equipment and has started exporting to nations in the Middle East and Africa.
These examples highlight a global shift toward resilience and self-reliance. More 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 for the first time, representing a new vision for global cooperation.
BRICS nations are also redefining global trade by turning to their own currencies, 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 is financing projects in local currencies, providing an alternative to traditional Western funding institutions. Additionally, efforts are underway to create a BRICS blockchain-based payment system.
This shift isn't about making political statements; it's about pragmatism. The world has witnessed the vulnerabilities of a dollar-dominated system, with crises like the 2008 financial meltdown and the pandemic-induced global recession affecting economies worldwide. Over-reliance on the dollar has proven risky, prompting countries to seek more stable and diversified financial mechanisms.
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Why threats, sanctions and one-currency dominance are past their prime
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