It's 2025, and the global landscape has transformed dramatically over the past decade. While some nations cling to outdated tactics, believing that threats of tariffs and sanctions can influence global dynamics, the world is moving in a different direction.
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 at a regular press conference, emphasizing that BRICS is not about confrontation but about fostering cooperation and shared prosperity. The reality is that the global community is no longer subscribing to single-currency dominance or pressure through sanctions.
Consider Russia's experience. Faced with a barrage of 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 homegrown alternative to SWIFT, and the Mir payment card, initiated in 2017, took on the roles traditionally held by global giants like Visa and Mastercard. These initiatives insulated the Russian economy and paved the way for stronger financial ties with allies such as Türkiye, Kazakhstan, and nations in the Middle East, reducing dependence on Western-dominated systems.
The U.S. also restricted Türkiye's access to American technology and equipment, including F-35 jets and armed unmanned aerial vehicles. In response, Türkiye invested in developing its own resources, producing these technologies domestically and even exporting them to Middle Eastern and African nations.
Russia and Türkiye's resilience highlights a broader shift. 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 attending as a full member for the first time, signaling a new vision for global cooperation.
BRICS nations are also redefining global trade norms. By conducting commerce in their own currencies, they've reduced reliance on the U.S. dollar. Brazil and China now trade using 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 traditional Western financial institutions. Moreover, initiatives are underway to establish a BRICS blockchain-based payment system.
This movement isn't about making political statements; it's rooted in pragmatism. The global community has witnessed the vulnerabilities of a dollar-dominated system, from the 2008 financial crisis to the pandemic-induced global recession. Over-reliance on a single currency has proven to be a risky strategy.
The world is recognizing that cooperation and diversification are key to sustainable prosperity. As nations continue to adapt and innovate, outdated tactics like threats and sanctions are becoming less effective. The future lies in collaborative efforts that respect the sovereignty and ambitions of all nations.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
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