The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa, with recent additions like Egypt, Ethiopia, Iran, and the United Arab Emirates—has emerged as a significant force in global geopolitics and economics. As of August 2025, the bloc represents over half of the world’s population and a substantial share of global GDP, positioning it as a counterweight to Western-dominated financial systems. The 17th BRICS Summit, held in Rio de Janeiro from July 6-7, 2025, underscored the group’s ambitions, particularly in pursuing a common strategy to challenge U.S. economic hegemony through de-dollarization.
BRICS: A Unified Strategy in the Making
The BRICS bloc has evolved from a loose economic alliance into a platform advocating for a multipolar world order. The 2025 Rio Summit, hosted by Brazil under President Lula’s leadership, marked a pivotal moment. The summit saw participation from 10 full members and 10 partner countries, including Algeria, Nigeria, and Kazakhstan, reflecting BRICS’ expanding influence. Discussions focused on reducing reliance on the U.S. dollar, enhancing trade in local currencies, and developing alternative financial systems like BRICS Pay, a decentralized payment messaging system introduced at the 2024 Kazan Summit. These initiatives signal a collective intent to reshape global financial architecture.
However, forming a common strategy is fraught with challenges. BRICS members have diverse economic structures and geopolitical priorities. For instance, China and Russia aggressively push for de-dollarization to counter U.S. sanctions, while India and Brazil maintain significant trade ties with the U.S., making them cautious about direct confrontation. Despite these differences, the Rio Summit’s commitment to a cross-border payment system alternative to SWIFT indicates a growing consensus on reducing Western financial dominance. The bloc’s determination to press forward, despite U.S. threats, suggests a strategic alignment, albeit one that requires careful navigation of internal divergences.
Trump’s Tariff Threats and BRICS’ Response
Since his return to the presidency in 2025, Donald Trump has adopted an aggressive stance toward BRICS, particularly targeting their de-dollarization efforts. On January 30, 2025, Trump posted on social media, warning that any country pursuing de-dollarization or a BRICS currency would face 100% tariffs and exclusion from U.S. markets. He reiterated this on July 8, 2025, stating, “Any country aligning with the anti-American policies of BRICS will be charged an additional 10% tariff. There will be no exceptions.” These threats aim to deter BRICS from challenging the U.S. dollar’s global primacy, which has been the cornerstone of international trade since World War II.
BRICS’ response has been defiant yet nuanced. A statement from the 2025 Rio Summit, reported by UOL on February 26, 2025, affirmed the bloc’s resolve to continue de-dollarization efforts, focusing on local currency trade and alternative payment systems. China and Russia, long targeted by U.S. sanctions, are leading this charge. For example, China’s Xi Jinping announced in July 2025 that BRICS would take concrete steps to reduce dollar dependency, a sentiment echoed across X posts from sources like @runews and @REDBOXINDIA. However, Brazil’s cautious stance, articulated by monetary policy director Nilton David, highlights a strategic retreat from a common currency, citing the dollar’s dominance for at least another decade. This reflects Brazil’s economic dependence on the U.S., which limits its appetite for a frontal challenge.
India, under Prime Minister Narendra Modi, also treads carefully. Modi’s participation in the Rio Summit alongside Lula emphasized cooperation on trade and sustainable development, but India’s growing defense and tech ties with the U.S. complicate its position. Meanwhile, Russia and China’s alignment, driven by Presidents Putin and Xi, remains unwavering, with both nations accelerating bilateral trade in yuan and rubles. These dynamics suggest that while BRICS is united in its long-term vision of a multipolar financial system, short-term strategies vary based on national interests.
What’s Happening in BRICS?
The interactions among BRICS leaders reveal the bloc’s complex dynamics. At the Rio Summit, Modi and Lula focused on strengthening India-Brazil ties, emphasizing trade in local currencies like the rupee and real. Their discussions, as reported by Eurasia Review, centered on expanding economic cooperation and supporting BRICS’ alternative payment systems. This aligns with India’s broader push for rupee internationalization, a process historically rooted in the 1950s when the rupee was legal tender in Gulf states. However, India’s balancing act is evident—Modi’s government seeks to leverage BRICS for economic diversification while maintaining strategic partnerships with the U.S.
Concurrently, Xi Jinping’s engagement with Vladimir Putin underscores a more assertive anti-Western stance. X posts from July 2025, such as those by @SprinterObserve, highlight Xi’s commitment to reducing dollar dependency, a priority shared with Putin, who has championed de-dollarization since U.S. sanctions intensified post-2014. Their collaboration has deepened through agreements on local currency trade and China’s digital yuan project, which could serve as a model for BRICS-wide financial systems. These interactions signal a division of roles: China and Russia drive the ideological push against the dollar, while Brazil and India focus on pragmatic economic integration.
Is the Future of De-Dollarization Being Determined?
De-dollarization—the process of reducing reliance on the U.S. dollar in global trade—remains a cornerstone of BRICS’ agenda. The future of this movement is being shaped by several developments:
BRICS Pay and Alternative Systems: The 2024 Kazan Summit’s Trans-Border Payment Initiative and the 2025 Rio Summit’s commitment to a SWIFT alternative are significant steps. BRICS Pay aims to facilitate transactions in local currencies, reducing exposure to U.S. sanctions and dollar volatility. Central banks’ increased gold purchases—1,045 metric tons in 2024—further signal a shift toward commodity-backed reserves.
Geopolitical Realignments: The inclusion of oil-rich nations like Iran and the UAE strengthens BRICS’ influence in energy markets, potentially enabling oil trade in non-dollar currencies. Nigeria’s partner status and Africa’s growing role in BRICS underscore the bloc’s appeal to the Global South, fostering a multipolar financial order.
Challenges to Unity: Despite progress, BRICS faces hurdles. Brazil’s acknowledgment of the dollar’s decade-long dominance and India’s cautious approach highlight internal divisions. The absence of supranational governance, unlike the EU’s European Central Bank, complicates a unified currency or payment system. Additionally, global trade’s entrenched dollar reliance makes a swift transition costly and complex.
Trump’s Influence: Trump’s tariff threats could paradoxically accelerate de-dollarization. As noted by Geopolitical Monitor, his aggressive policies may erode trust in the dollar, pushing nations toward alternatives. However, immediate economic retaliation, like 100% tariffs, could disrupt BRICS economies, particularly Brazil’s, which relies heavily on U.S. trade.
The future of de-dollarization is not a binary outcome but a gradual process. While a BRICS common currency remains unlikely in the near term, initiatives like BRICS Pay and local currency trade are laying the groundwork for reduced dollar dependence. Over the next two decades, a multipolar financial system could emerge, with the yuan, rupee, and other currencies gaining prominence in regional trade.
BRICS’ Strategy and Global Implications
BRICS’ pursuit of a common strategy is evident in its expansion, alternative payment systems, and de-dollarization rhetoric. However, achieving consensus among diverse members remains a challenge. Trump’s policies may unify the bloc against external pressure but also expose its vulnerabilities, particularly for members like Brazil and India with strong U.S. ties. The interactions between Modi, Lula, Xi, and Putin reflect a delicate balance of cooperation and competition, with each leader navigating national interests within the BRICS framework.
The de-dollarization movement is gaining momentum but faces significant hurdles. BRICS’ success will depend on its ability to implement practical alternatives like BRICS Pay and foster trust among members and partners. For now, the dollar’s dominance persists, but the bloc’s actions in 2025 signal a long-term shift toward a multipolar world. As global power dynamics evolve, BRICS’ strategy will continue to shape the future of international trade and finance.
