For the past several years, the BRICS economic alliance—comprising Brazil, Russia, India, China, and South Africa—has been pushing for growth and greater global influence. Despite increasing tensions with the United States, the bloc remains committed to expanding its reach. This commitment is set to materialize in 2025 as BRICS welcomes four new expansion nations that could reshape the alliance’s trade dynamics.
US Economic Policy vs. BRICS Growth
In the first two months of 2024, the United States has escalated its economic confrontation with BRICS. In an effort to curb global de-dollarization, Washington has threatened a staggering 150% tariff on the bloc. This aggressive stance aims to dissuade emerging economies from shifting away from the US dollar. However, these tactics may not be enough to halt BRICS’ rapid expansion.
Despite internal disagreements regarding de-dollarization, the alliance is pushing forward with its expansion strategy. This year, BRICS has officially welcomed Indonesia, Malaysia, Thailand, and Vietnam as partner nations. Their inclusion marks a significant shift, reinforcing the bloc’s presence in Asia—a region that plays a crucial role in global trade.
Strengthening Trade and Economic Independence
The addition of these four ASEAN nations is expected to fortify BRICS’ economic framework. According to a report by Global Times, Malaysia and Indonesia bring “robust manufacturing capabilities,” making them valuable assets for the alliance. Moreover, these countries are strategically positioned within global supply chains, allowing BRICS to diversify its trade routes and lessen its reliance on Western financial systems.
Beyond trade, this expansion strengthens BRICS’ ambition to reduce dependence on the US dollar. While de-dollarization remains a contentious issue within the bloc, US economic policies—such as President Donald Trump’s tariff threats—only reinforce the need for an independent financial system. Sanctions and economic restrictions have historically driven BRICS nations to seek alternatives to the greenback, and this new wave of expansion could accelerate that movement.
Also Read: BRICS Invites Mexico, Colombia, and Uruguay to 2025 Summit Amid Expansion Talks
As 2025 approaches, BRICS’ latest additions signal a shift in global economic power. With a stronger presence in Asia and an increasing push for financial autonomy, the bloc is poised to challenge Western dominance and redefine global trade.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
