Battle for Dollar supremacy: Trump’s tariff threats and BRICS challenge

The global economic order stands at a critical juncture as President Donald Trump’s recent declaration to impose 100 percent tariffs on BRICS nations seeking to undermine the US dollar’s dominance reverberates across international markets.

- by SHAHID K ABBAS

This threat encapsulates a fierce defense of America’s economic primacy amid mounting efforts by emerging economies to recalibrate the global financial architecture.

The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—represents a formidable economic coalition with a combined GDP nearly rivaling that of the traditional G7 powers.

Over the past decade, these nations have intensified efforts to reduce reliance on the US dollar by promoting local currencies in international trade and exploring alternatives, including potential common currency frameworks. This push for “de-dollarization” signals a desire for greater economic sovereignty and a shift toward a multipolar global currency system that dilutes Western financial dominance.

China and Russia, in particular, have been vocal and proactive in spearheading this challenge, seeking to circumvent US sanctions and minimize dollar exposure. India’s approach, while supportive of local currency trade within BRICS, remains more nuanced—balancing its strategic ties with the US against its economic ambitions within the bloc.