By 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 redesign the economic architecture and challenge the dollar’s dominance.
On the other hand, Trump has 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 to impose high tariffs on the imports of BRICS states if they went for the de-dollarization and in favor of an alternative currency to undermined the dollar. The tariffs’ ratio counted evenup-to 100% which is recorded higher than ever in bi-lateral or multilateral.
As Trump has publicly claimed that the BRICS members tried to stab the US economy and to undermine the dominance of the U.S. dollar by working towards an alternative currency. 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, it seems that 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, probably, 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 with 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 play as 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. The records shows that 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.
- BS in International Relations, International Relations From International Islamic University Islamabad. He can be accessed on zohaibanjum503@gmail.com
