The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has become a focal point of US foreign policy under President Donald Trump. Following his reelection, Trump has intensified his rhetoric against the group, particularly over its de-dollarization efforts. His latest strategy? Threatening tariffs. However, this approach could have unintended consequences, potentially harming the US economy more than it benefits.
Trump has consistently emphasized the importance of maintaining the US dollar’s global dominance, likening its loss to a national defeat. This determination has led him to target BRICS, which has actively sought alternatives to the dollar in international trade. Yet, imposing tariffs as a countermeasure may exacerbate economic tensions between the US and the bloc, leaving American trade interests vulnerable.
The Trade Imbalance: A Double-Edged Sword
Data from Statista highlights a critical concern: the US runs a significant trade deficit with BRICS nations. In 2023, the US exported nearly $300 billion in goods to the bloc while importing approximately $650 billion worth of merchandise. This imbalance suggests that retaliatory tariffs from BRICS could disproportionately impact American importers, leading to higher costs for consumers and businesses alike.

Moreover, the BRICS alliance, with its vast economic influence, could use tariffs to accelerate its de-dollarization agenda, undermining Trump’s efforts to protect the greenback’s global status. Such a move could lead to reduced reliance on the US dollar in international trade, further straining America’s economic dominance.
Geopolitical Uncertainty Ahead
While Trump’s tariff threats aim to pressure BRICS into submission, they may also solidify the bloc’s resolve to reduce dependency on Western financial systems. The outcome of this standoff remains uncertain, but the stakes are high. Can the US afford to risk its trade relationships with BRICS to maintain dollar supremacy? Or will this aggressive approach backfire, leaving American businesses and consumers to bear the brunt of economic fallout?
Also Read: Saudi Arabia’s BRICS Decision Still Pending: What’s at Stake for Global Alliances?
The coming months are poised to be critical for global trade dynamics, as the US and BRICS navigate this escalating geopolitical chess game. The world watches closely, with economic stability hanging in the balance.
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.