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The past several weeks have witnessed escalating geopolitical tensions, with the United States and the Global South locked in an economic standoff. At the center of this brewing trade war is US President Donald Trump’s aggressive approach toward the BRICS alliance. His administration has launched an economic offensive against nations seeking to reduce their reliance on the US dollar. But two months into his return to the White House, is Trump’s plan working?
Trump’s Economic Offensive Against BRICS
During his campaign, Trump warned that losing the US dollar’s status as the world’s reserve currency would be equivalent to a national defeat. This belief has driven his administration’s economic strategy, which directly confronts BRICS-led de-dollarization efforts. Over the past two years, BRICS—led by China and Russia—has sought to promote local currencies in international trade, threatening the dominance of the greenback. Under the previous administration, these efforts largely went unchallenged. However, Trump’s return has changed the dynamics.
A Short-Term Boost for the Dollar?
Trump’s strategy appears to be yielding immediate results. The US Dollar Index (DXY) has been on an upward trend, with three consecutive days of gains before Tuesday. Additionally, last week saw the dollar’s strongest daily rise in nearly a month, according to Reuters.
His tariff threats against BRICS members have also stirred global economic discourse. India and Indonesia have distanced themselves from any anti-dollar agenda, stating that BRICS’ de-dollarization efforts are purely economic, not political. Meanwhile, Russia has formally dismissed plans for a common BRICS currency, a key point of contention that Trump originally opposed.
Also Read: BRICS Abandons Currency Plan – Will Trump Drop His Tariff Threats?
A Long-Term Gamble
Despite these short-term gains, the sustainability of Trump’s policy remains uncertain. While the US dollar had been facing gradual depreciation, it was not under immediate threat. The aggressive push against BRICS could further strain international relations and accelerate alternative financial systems. Ultimately, Trump’s attempt to safeguard the dollar may prove to be an overreaction that inadvertently fuels the very de-dollarization movement he seeks to dismantle.
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.
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