Although we are just three months into the year, the global economy has faced a monumental whirlwind in the form of US President Trump’s Liberation Day tariff plan. However, that could be a notable move for the BRICS alliance, as it could propel de-dollarization to take a giant leap in 2025.
Shortly after winning the election in late 2024, Trump targeted the BRICS bloc with 150% tariffs. Moreover, the reasoning for the stance was to protect the global reserve status of the greenback. That could be threatened, but not by any policy development made by the economic alliance this year.
Also Read: BRICS: India to Turn on US, Join China in Trade War?
Why Trump’s Tariff Could Do More for De-Dollarization Than BRICS Ever Could
The United States introduced a massive 10% baseline tariff on all countries in a groundbreaking tariff plan unveiled last week. Indeed, the move pushed the country deeper into a trade war with China. As a result, the Asian nation has sought to continue declining its use of the US dollar.
That could be a trend that continued throughout a host of nations over the next year. Moreover, it will likely have less to do with the development of any alternative currency or policy plan. Indeed, BRICS and other nations could see a de-dollarization leap in 2025.
Also Read: BRICS: 8 Strongest Currencies That Rule the World
The reason is likely to be the Trump tariff plan. Since the Liberation Day plan was announced, experts warned of the currency’s global reserve currency status. How could they not? The move places any investment and reliance on the greenback at great risk, considering its track record with America-first policies.
It is easy to forget that US dollar weaponization was a key reason for the BRICS formulation and ascension in the first place. “The dollar is being used as a weapon,” Russian President Vladimir Putin once said. “I think that this is a big mistake by those who do this.
Although India has embraced continued cooperation with the US, few BRICS members have followed. Chiang is the most combative, announcing 84% retaliatory tariffs on the country. Moreover, Brazil has been leading the charge for replacing the US dollar internationally. With gold spiking, it could see several surprising nations follow suit before 2025 ends.
