Despite his most recent statement against the BRICS bloc, the economic alliance has recently confirmed the development of its own payment system, disregarding a warning from President-elect Trump. In a recent post to Truth Social, the returning president warned that his administration would issue 100% tariffs on countries ditching the US dollar.
Because of their ongoing de-dollarization efforts, Trump specifically targeted the BRICS alliance. Several nations have already responded, backtracking on the groupâs efforts to move away from the greenback. Although it seemed that the tariff warning was working, the alliance had not collectively retreated from its ongoing payment plans.
Republican presidential nominee former President Donald Trump waves as he walks with former first lady Melania Trump at an election night watch party at the Palm Beach Convention Center, Wednesday, Nov. 6, 2024, in West Palm Beach, Fla. (AP Photo/Evan Vucci)
Also Read: Why Trumpâs 100% Tariff Plan May Only Further De-Dollarization
BRICS Payment System Moving Forward Amid Trumpâs 100% Tariff Warning
The last two years have seen the BRICS bloc grow rather rapidly. Although it had been a present alliance since 2001, it had fast-tracked its expansion after 2022. A large reason for his shift was the Western sanctions imposed after Russia invaded Ukraine. The move unified the economic alliance as they moved to lessen reliance on the US dollar.
However, 2025 will see those efforts be greatly challenged by the West. With the incoming administration committed to protecting the US dollar as the worldâs currency, the global south has already sought to decrease its presence. That saga has faced its latest update, as BRICS confirmed their payment system plan is moving forward despite Trumpâs 100% tariff warning.
Source: Freepik.com
Also Read: Global US Dollar Payments Officially Fall Below 50%
Specifically, Russian Deputy Foreign Minister Alexander Pankin confirmed the development of the system. Yet he also affirmed that the bloc was no longer exploring the creation of a new currency. The move seems to curtail Trumpâs issue with the bloc creating its own currency to replace the dollar in international trade.
The ongoing development will be a key focus entering the first year of Trumpâs return. The tariff plan itself is a weaponization effort akin to the previous regimesâ sanctions. Still, Trump has proven to be anti-sanction, so there are many who expect his second term to feature positive relations with the global south.
