The BRICS bloc—originally comprising Brazil, Russia, India, China, and South Africa—has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the UAE, representing nearly half of the world's population. The group's ambition to facilitate trade using local currencies has sparked global debate, drawing sharp criticism from U.S. President Donald Trump.

Trump’s Warning Against De-dollarisation

Upon resuming office, Trump issued a stern warning to BRICS nations, threatening 100% tariffs on trade with the U.S. if they moved toward de-dollarising the global economy. Labeling their plans as a direct challenge to U.S. dominance, Trump stated, “We have them over a barrel. If BRICS tries this, they won’t be happy with the consequences.” This is not the first instance of Trump opposing BRICS’ de-dollarisation efforts. Previously, in a Truth Social post, he criticized the bloc's intentions, emphasizing the need to maintain the dollar's global supremacy.

India’s Balanced Approach

India has maintained a nuanced stance. While External Affairs Minister S. Jaishankar reiterated that BRICS' economic measures aim to streamline financial processes rather than undermine the U.S. dollar, India continues to balance its strategic relationships with the U.S., Russia, and Iran.

BRICS' Strategic Rationale

The push for local currencies stems from disruptions caused by sanctions and financial restrictions, such as Russia's removal from SWIFT and Iran's long-standing exclusion. By reducing dependency on the dollar, BRICS hopes to secure its trade networks against geopolitical risks.

Challenges Ahead

As BRICS expands and explores de-dollarisation, tensions with Western powers are likely to intensify. While India supports smoother transactions within BRICS, its geopolitical concerns, especially regarding China, make the road ahead complex and uncertain. This evolving dynamic underscores the shifting global power structures in a post-pandemic, multipolar world.