It's 2025, and the global stage has transformed dramatically from a decade ago. Yet, some nations persist with outdated tactics, believing that threats of tariffs and sanctions can still sway the world.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.
The Chinese Ministry of Foreign Affairs responded promptly, emphasizing that BRICS is about fostering cooperation and shared prosperity, not confrontation. The reality is that the world is no longer accepting one-currency dominance or sanction-fueled pressure.
Consider Russia's experience. When it faced extensive sanctions from the West in 2014 and 2022, many predicted 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 services provided by Visa and Mastercard. These initiatives insulated the Russian economy and paved the way for deeper financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, all without relying 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. In response, Türkiye began producing these assets domestically and even started exporting them to Middle Eastern and African nations.
Russia and Türkiye's resilience is indicative of a broader trend. An increasing number of nations are advocating for a more equitable world order. Last year's G20 Summit in Brazil marked a historic moment, with the African Union participating as a full member of the bloc for the first time. The G20 now represents a new vision beyond a gathering of economically powerful countries.
BRICS nations are also redefining global trade norms. By conducting commerce in their own currencies, they are reducing dependence on the U.S. dollar. Brazil and China now trade in their national currencies, a practice mirrored by India and its regional partners. The BRICS New Development Bank has intensified efforts to finance projects in local currencies, offering an alternative to Western financial institutions. Additionally, there are initiatives underway to create a BRICS blockchain-based payment system.
This shift is not about making a political statement but about pragmatism. The global community has witnessed the vulnerabilities of a dollar-dominated system, with crises reverberating across continents. From the 2008 financial meltdown to the pandemic-induced global recession, excessive 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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