De-Westernization, De-Dollarization and a New World Order– BRICS

The coalition of BRICS countries has now grown to ten members strong with the introduction of Egypt, Ethiopia, Iran, and the UAE in 2024, as well as Indonesia in early 2025. The group also boasts a slew of nine partner countries, including recently joined Vietnam. BRICS, which initially included Brazil, Russia, India, and South Africa, serves as an informal economic union to combat Western-dominated banking systems and the prominence of the USD. The group aims to syncretize economic, political, and technological coordination with the goal of expanding global strategic influence and supporting the emerging economies of its member nations without relying on Western-backed banking institutions such as the G7 and World Bank. The group's prominent rise across the past 10 years has led to speculation of its future global influence, power, and quest for sovereignty, especially in the wake of Trump-induced tariffs. 

Weaponized Trade

Trump’s July 2025 announcement regarding the placement of 10% tariffs directed at “anti-American alliances” coincides with other external tariff pressures on the BRICS coalition. Trump also announced that Brazil, a founding member, will be levied a hefty 50% tariff policy starting August 1st, 2025. During Bric’s July 6-7 annual summit in Rio De Janeiro, they condemned such action with a joint declaration stating, “[the tariffs] distort trade and are inconsistent with [World Trade Organization] rules.” This also comes amid U.S. condemnation of India, China, and Brazil’s continued purchasing of cheap Russian oil and gas which has helped the Kremlin finance its activities in Ukraine. U.S. Senator Lindsay Graham stated, “I would tell China, India & Brazil. If you keep buying cheap Russian oil, to allow this war to continue, we will tariff the hell out of you.” Tariff threats levied at BRICS nations have only seemed to push the bloc further together in reaching their goal of de-dollarization and the self-reliance of the NBD and CRA.

BRICS Economic Shield and Retaliatory Actions

BRICS Pay & Local Currency Trade: The July summit brought about a heightened alertness among BRICS members regarding the essential bypassing of U.S.-tied banking organizations. Wherein members agreed to accelerate BRICS Pay, a global payment system to decrease reliance on SWIFT, by bypassing the system for local currency settlement.

Tariff Stabilization Fund: The July 6-7th summit brought about proposals to create a tariff stabilization fund for afflicted BRICS members. This reserve would help emerging members offset losses, provide liquidity, and in theory create an economic shield from U.S. tariffs.

New Development Bank: A multilateral development bank, aimed at supporting BRICS bloc countries in providing financial assistance with mutual settlement and lending operations. The bank’s creation agreement states its purpose as such: “The bank shall support public or private projects through loans, guarantees, equity participation, and other financial instruments. The bank holds an authorized capital of 100 billion USD and a subscribed capital of 50 billion USD.

Intra-Trade Expansion: BRICS members have agreed to expand rupee and yuan-based commodity exchanges, as well as create official partisan trade agreements by 2026.