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Trump Tariff Threat Derails BRICS Push for Common Currency

BRICS Halts Plans for Common Currency and De-Dollarization After Trump’s Tariff Threats Divide Alliance

  • BRICS alliance slowed its efforts to challenge the U.S. dollar following tariff threats from former President Donald Trump.
  • The group had previously shifted trade deals to local currencies and planned a shared currency to reduce dependence on the dollar.
  • Trump’s proposed tariffs caused divisions within the alliance, separating members into opposing sides.
  • Progress on the new BRICS currency stalled, with only a mock-up bill displayed at the 2024 summit in Kazan.
  • No formal mention of de-dollarization or a shared currency appeared in the 2025 BRICS summit discussions.

The BRICS alliance, consisting of several major developing economies, reduced its push against the U.S. dollar after former President Donald Trump threatened tariffs. These tariff threats influenced discussions and changed the group’s strategy in recent summits.

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Earlier, BRICS countries had agreed to rewrite their trade agreements by settling payments in local currencies rather than the U.S. dollar. The members also signaled plans to create a shared currency. According to summit reports, the idea was to increase economic strength among member countries and lessen reliance on Western economies.

After facing the possibility of new tariffs from Trump, BRICS members reportedly began talks with the White House, seeking fewer customs restrictions. The group showed a mock-up bill for the planned currency at their 2024 summit in Kazan, but it did not represent real value. The article notes, “All the alliance did was manage to create a mock-up bill, which has no value in the real world.”

The alliance became divided, with Russia, China, and Iran on one side, and India, South Africa, and the UAE on the other. This rift resulted in little progress on a unified BRICS currency. Reports state that at the 2025 summit, there was no formal discussion of de-dollarization or a new joint currency. The possibility of economic retaliation from Trump influenced their cautious approach.

The article explains that the developing economies of BRICS countries now hesitate to take actions that could disrupt their recent economic progress. The group’s members are currently focused on maintaining strong GDP growth amid global uncertainty.

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A mock-up of the proposed BRICS currency was displayed by Russian President Vladimir Putin at the Kazan summit. However, experts say no official steps have been taken to establish the new currency.

To date, the BRICS common currency remains a future possibility with no immediate signs of implementation.

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