- The BRICS currency launch is set for 2026 despite new U.S. tariffs targeting the bloc.
- The U.S. plans a 100% tariff on Chinese goods starting November 1, as a move to block the BRICS currency.
- BRICS countries are expanding digital payment systems and trade settlements in rubles, yuan, and other currencies.
- Legal limits on tariff authority may reduce U.S. pressure on BRICS currency development soon.
- BRICS now includes Egypt, Ethiopia, Iran, UAE, and Indonesia, controlling about 25% of the global economy.
The BRICS group plans to launch its own currency in 2026 despite recent U.S. efforts to hinder the project. On October 10, former President Donald Trump announced a 100% tariff on all Chinese goods, effective November 1, aiming to disrupt the currency’s progress. Member countries continue to expand digital payment systems and work toward the joint currency.
By September 2025, U.S. tariffs on Chinese goods had increased to nearly 18%, generating over $30 billion monthly in revenue, up from under $10 billion in 2024. China described the tariffs as showing “U.S. double standards” and warned of possible countermeasures. Trump warned, “We urge these countries to abandon the idea of creating a rival currency or agreeing on an alternative to the dollar. Otherwise, they will face 100% tariffs, completely losing access to America’s unrivaled economic markets.”
The BRICS nations are advancing their currency plans with Russia and China settling energy trades in rubles and yuan. India has paid for Russian oil using yuan, rubles, and UAE dirhams since 2023. New payment systems, called BRICS Pay and BRICS Bridge, are being developed to serve as alternatives to the SWIFT international payment network. The bloc recently expanded, adding Egypt, Ethiopia, Iran, UAE, and Indonesia. BRICS now accounts for roughly one-quarter of the world economy and nearly half the global population.
Legal challenges also impact U.S. tariff authority. On August 29, 2025, a U.S. Court of Appeals ruled that Trump’s tariff actions exceeded his authority under the International Emergency Economic Powers Act (IEEPA), allowing tariffs only until October 14, 2025. The Supreme Court will hear related arguments in November 2025. If the court rules against the tariffs, it may ease pressure on BRICS currency development.
Expert Alicia Garcia-Herrero, a senior fellow at Brussels-based think tank Bruegel, noted the bloc’s anti-Western stance and the desire to change the global order. She also highlighted tensions within BRICS, pointing out that “India, together with Brazil, is trying to balance the anti-Western messaging from BRICS, which is dominated by China and Russia.” Despite these political dynamics, intra-BRICS trade made up only about 3% of the $33 trillion global trade in 2024. The U.S. dollar still dominates 90% of global transactions.
The digital yuan project continues on schedule, targeting emerging markets ahead of the 2026 BRICS currency launch. The New Development Bank has approved $39 billion in loans. At their July summit, BRICS leaders criticized unilateral sanctions and protective tariffs. As external pressures rise, the BRICS currency launch remains set for 2026, signaling a significant challenge to dollar dominance.
For more on this topic, see the article on the Dollar in Danger as BRICS Currency Launch Fuels Rapid De-Dollarization. Also referenced is information on Alicia Garcia-Herrero.
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