(Source: Zohaib Anjum)
The recent implications of Trump’s policy of imposing huge tariffs are once again in the spotlight of geopolitical rivalries that have intensified the diplomatic line.
This strategic move came to light shortly after the recent BRICS summit 2025, in which member
states agreed to have an alternative currency model aimed at shrinking the dependency on the
U.S. dollar globally and economic hegemony.
The master plan of BRICS began working towards de-dollarization and the establishment of a
New Development Bank (NDB). Through this step, the member states seek to reshape the
economic architecture and challenge the dollar’s dominance.
On the other hand, Trump not only frightened BRICS states, particularly India, China, and
Russia, but also imposed excessive tariffs on trade with them. This gesture fueled speculation
that Washington’s trade measures could be a strategic counter to the de-dollarization efforts led by the emerging economies.
This plan is going on as the same as reported earlier in 2025, that Trump warned the BRICS
states that he would impose high tariffs on the imports of BRICS states if they went for the
de-dollarization and in favor of an alternative currency to the dollar. These tariffs may be uoto
100% on the BRICS member states.
As Trump has publicly claimed that the BRICS members tried to stab the economy with the U.S.
and to undermine the dominance of the U.S. dollar by working towards an alternative currency to
the U.S. dollar.
According to the Washington Post, he asserted, “The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is over”.
He warned BRICS states to refrain from going on with the alternate common currency model against
the dollar.
But on the other side of the game, India, Russia, and China are fully focused on their economic
policies within the BRICS, modeling the currency and common trade. In response to this focused
policy, Trump jumped to create hurdles for BRICS states in the shape of tariffs to counter them.
The escalation in Trump’s tariffs may expand policies and the focus of BRICS on
de-dollarization, shaping a new form of economic war with financial barriers, high tariffs on
trade, diplomatic struggles, and tensions for global trade.
During this emerging economic war, the imposition of tariffs has become the primary arsenal
tool of the U.S. policy. Other than that, conventional military means, Trump now wields tariffs as
the foremost instrument of constraint, signaling a shift from military warfare to economic
warfare.
On the other side of this economic war, BRICS has initiated towards the accelerate currency
diversification and create alternative payment systems to reduce reliance on the U.S. dollar.
For BRICS, the creation of mechanisms such as local currency payments and cross-border
settlements is not only reducing the reliance on the U.S. dollar but also a challenge to U.S.
hegemony.
This economic tool has put significant implications for diplomacy and international affairs and
initiated another race of non-traditional threats to pursue diplomatic goals.
These policies within the states replace the bullets and bombs in shaping global politics. The
economic instruments have become the modern arsenal of geopolitics, enabling states to weaken
their rivalries and to pressure them to reshape their policies through economic means.
Tariff threats and economic policies from Trump reflect the broader ambitions of the U.S. hegemony and aim to retain the global governance model where Washington sets the rules. By increasing the economic pressure on BRICS and other challengers, Trump seeks to demonstrate
that the U.S. can easily retain its capacity to comply with the international governance system.
This approach of the U.S indicates that both its institutional and economic powers hold the
identity of central pillars and the resisting powers for its competitors in the global governance
system.
BRICS is unlikely to achieve its goals of de-dollarization in the near term, but it can reduce the
hegemony and dependency of the dollar by making the intra-BRICS trade payments in their own
currency.
If the U.S. persistently continues its pressure and tariffs towards BRICS, it may
accelerate the de-dollarization and lead to the alter currency.
The world is witnessing the global shift from unipolar U.S. dominance to a multipolar economic
and strategic world where the unipolar global governance order is increasingly contested.
BRICS aimed for de-dollarization, and the U.S. escalation in tariffs and sanctions clearly shows
the transformation in which currency, trade, and tariffs are reconfigured.
These signals show that the next era of warfare will be defined as the less armed but more economically powerful coalitions to influence overrules, international markets, and currencies.
The future of BRICS member states will transform according to their unity in their goals and
decision-making body.
It will also be shaped by their translation of economic potential and political influence. If the
internal rivalries of BRICS managed them, then BRICS will emerge as the proper counterbalance
to Western institutions.
Their success totally depends on their internal trade bloc and the efficient use of alter U.S. dollar. BRICS may not replace the U.S. dominance right now, but it may emerge as a counter approach to balance the U.S.-led order.
Developing countries are facing problems of crossroads in multipolar systems. They are
confused about whether to ally with the U.S.-led system or to go with the BRICS framework.
These states must shape their future policies on the basis of long-term economic benefits,
political influence, and to avoid tariffs and sanctions. Their choices will not only determine their own growth but also impact the influence the broader balance in the system.
In the future, the U.S. may use dual-diplomacy towards BRICS, along with tariffs and sanctions,
but it will also use soft power diplomacy in the name of incentives, cultural exchange programs,
dialogue, and organizational engagements.
Hard diplomacy will remain the primary tool of the
U.S. if the BRICS persists in the de-dollarization policy. It means the choice of hard and soft diplomacy depends on the goals of the BRICS extension.
- This article by Zohaib Anjum, a graduate in International Relations from IIUI (contact: zohaibanjum503@gmail.com).
