In 2025, the global economic landscape is experiencing a significant transformation. Traditional tactics of threats, sanctions, and reliance on a single dominant currency are losing their influence as nations pursue more collaborative and equitable approaches.
On his first day in office, U.S. President Donald Trump announced intentions 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 BRICS nations—Brazil, Russia, India, China, and South Africa—remain steadfast in their pursuit of financial independence and cooperation. A spokesperson for the Chinese Ministry of Foreign Affairs emphasized at a regular press conference that BRICS is focused on fostering cooperation and shared prosperity, not confrontation.
Examples abound of nations adapting to new economic realities. When Russia faced extensive sanctions in 2014 and 2022, many predicted economic turmoil. Instead, Russia developed its own financial systems, including the System for Transfer of Financial Messages (SPFS) as an alternative to SWIFT, and the Mir payment card system to replace international card providers. These initiatives not only stabilized the Russian economy but also strengthened financial ties with nations across Eurasia and the Middle East.
Similarly, Türkiye, after encountering restrictions from the U.S. on technology and equipment such as F-35 jets, invested in developing its own defense capabilities. Türkiye now produces advanced equipment domestically and has begun exporting to nations in the Middle East and Africa.
The shift towards a more multipolar economic order is further evident in international forums. The G20 Summit in Brazil last year marked a historic moment with the African Union participating as a full member for the first time, reflecting broader representation and a new vision for global cooperation.
BRICS nations are actively redefining global trade by increasing the use of their national currencies in commerce, thereby reducing dependence on the U.S. dollar. Brazil and China now conduct trade using their national currencies, a practice also embraced by India with its regional partners. The BRICS New Development Bank is financing projects in local currencies, and efforts are underway to establish a blockchain-based payment system for these nations.
This shift is driven by pragmatism. The vulnerabilities exposed by over-reliance on a single currency, especially during crises like the 2008 financial meltdown and the global recession induced by the pandemic, have prompted nations to seek more stable and diversified economic mechanisms.
As countries continue to adapt and pursue mutual growth, it becomes clear that threats and sanctions are becoming less effective. The global community is moving towards collaboration, financial innovation, and the establishment of a more balanced economic landscape.
In a world where cooperation and mutual respect are increasingly valued, the reliance on unilateral actions like sanctions and the dominance of a single currency are being reconsidered. The evolution of BRICS and the broader international response signal a new era in global economic relations.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
cgtn.com
