It's 2025, and the global landscape has transformed significantly over the past decade. Despite this, some nations persist with outdated strategies, believing that threats of tariffs and sanctions can still influence the world.
On his first day in office, U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they continue their de-dollarization efforts. He stated, \"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.\"
The Chinese Ministry of Foreign Affairs responded, emphasizing that BRICS is focused on fostering cooperation and shared prosperity, not confrontation. The reality is that the world is moving away from one-currency dominance and sanction-driven pressure.
Consider Russia's experience. When faced with 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 a domestic alternative to SWIFT, and the Mir payment card, initiated in 2017, replaced Visa and Mastercard within Russia. These initiatives insulated the Russian economy and strengthened financial ties with non-Western allies, such as Türkiye, Kazakhstan, and nations in the Middle East, reducing dependence on Western-dominated systems.
Similarly, Türkiye faced restrictions from the U.S. on access to technology and equipment, including F-35 jets and armed unmanned aerial vehicles. Türkiye responded by developing its own resources to produce this equipment and has started exporting to Middle Eastern and African nations.
These examples reflect a broader trend. More nations are seeking a more equitable world order. Last year's G20 Summit in Brazil marked a historic moment, with the African Union attending as a full member for the first time. The G20 now represents a new vision that extends beyond the interests of a few economically powerful countries.
BRICS nations are also redefining global trade. They have increasingly turned to their own currencies for commerce, reducing reliance on the U.S. dollar. Brazil and China now trade using their national currencies, a move echoed by India and its regional partners. The BRICS New Development Bank is financing projects in local currencies, offering an alternative to funding through Western institutions. Additionally, 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 witnessed the vulnerabilities of a dollar-dominated system, with financial crises impacting economies worldwide. From the 2008 financial meltdown to the pandemic-induced global recession, over-reliance on the dollar has proven risky.
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Why threats, sanctions and one-currency dominance are past their prime
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