Various efforts to reduce dependence on the US dollar in global trade have put the future of this dominant currency under the spotlight. Newly elected US President Donald Trump has returned to the global economic stage with the same offensive style and approach as before. This time, Trump set his sights on the BRICS group and began threats and criticism from the start. The BRICS, made up of major economies such as Brazil, Russia, India, China, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, is a common currency that could challenge the long-standing domination of the dollar. We are discussing the creation of With world trade.
Trump responds to these moves with harsh rhetoric, threatening 100% tariffs and threatening the complete exclusion of BRICS members from the US market if they continue to push for the derailment. But Trump’s comments have attracted global attention on issues of the dollar’s future.
Responding to BRICS’s arguments about supporting rival currency creation and adopting alternatives to the dollar would spell the end of the dollar’s domination in world trade, which is its position since the world war – Trump states: These countries abandon the idea of creating rival currencies or agreeing to an alternative to the dollar. Otherwise, they would face 100% tariffs and lose access to America’s unparalleled economic markets altogether. ”
Recently, Trump also threatened to impose a 25% tariff on all imports from Canada and Mexico, plus a 10% tax on goods made in China.
On the surface, Trump’s tactics may seem to strengthen the dollar’s position. However, deeper analysis suggests that they backfire. Instead of blocking BRICS countries, they may actually push their efforts forward. China, which had long doubted Washington’s use of the US dollar as a geopolitical tool, has slowly built an alternative financial system over the past decade. For example, by using Euan for the original trade settlement and expanding the direct influence of Beijing through belt and road initiatives. The Chinese government is also diversifying its foreign reserves and reducing its dependence on the US dollar in favor of gold and other currencies.
From this point of view, Trump’s statement is not a deterrent for BRICS countries, but a rallying cry for urgent action. His continued use of tariffs and sanctions as tools of economic diplomacy not only deepened the division between the US and its rival states, but also promoted mistrust among US trading partners. This approach undoubtedly drives other countries to seek alternatives to the dollar. China and Russia have been at the forefront of these changes as key targets of US sanctions and trade wars, deepening their trade contracts and cooperation in local currencies under the BRICS framework.
While the creation of a common currency for BRICS or adoption of US dollar alternatives remains intertwined with logistical and time challenges, the initiative symbolizes the Bloc’s collective resolve to build a US-independent financial system. I’m doing it. Trump’s repeated threats can disrupt these efforts in the short term, but inevitably test the concerns underlying these initiatives. The US uses its economic power with little consideration of long-term global financial stability and cites its pursuit only. Your own one-sided profit.
For China, trapped in strategic competition with the United States, shaping a new and advantageous global order goes beyond economics. These initiatives are part of Beijing’s broader ambitions to establish itself as a global superpower. The multipolar financial system reduces vulnerability to US economic pressures in China and other BRICS countries, giving them greater freedom to pursue strategic goals on a regional and global scale. For example, the Chinese digital Original project is part of this vision and could serve as an alternative to the dollar-based international payment system, particularly in emerging markets.
Ultimately, the dominance of the dollar is built primarily on trust. This believes that the US serves as a responsible leader in the global economy and sees dollar-based assets as stable and accessible. However, by weaponizing the dollar through sanctions and tariffs, Trump risks eroding this trust not only among his enemies but also among his allies. As this trust fades, so does the dollar’s status as a global reserve currency.
The paradox of Trump’s aggressive stance on decooperativeness is that by supporting tariffs and sanctions, Trump is accelerating the very tendency he wants to fight. If he fails to change courses, the world may soon find itself more united against Washington.
The views expressed in this article belong to the authors alone and do not necessarily reflect the views of geopoliticalmonitor.com.
