Despite tariff threats from the US president, the BRICS economic alliance is committed to decreasing its dependence on the US dollar, according to the Brazilian president.
Brazilian President Luiz Inacio Lula da Silva stated that BRICS nations will continue to seek alternatives to the dollar in trade, despite tariff threats from US President Donald Trump.
Since his election last November, Trump has made numerous threats to BRICS, acknowledging that the bloc’s efforts to reduce dollar dependence in bilateral trade and promote national currencies challenge the dollar’s dominance, which he opposes.
Speaking at a BRICS sherpas meeting on Thursday, Lula said Brazil’s chairmanship this year will bolster the group’s pursuit of a multipolar world. The expanded group, now including Brazil, Russia, India, China, South Africa, Ethiopia, Iran, and Egypt, is increasing the use of national currencies in mutual trade.
“US President Donald Trump’s tariff threats will not deter the group from seeking alternative payment platforms between member countries,” Lula stated.
Trump has repeatedly threatened to curtail trade with BRICS members if they attempt “to destroy” the dollar.
Earlier this month, he reiterated his intention to impose substantial tariffs on all imports from BRICS countries if they proceed with establishing a common currency. BRICS members currently represent approximately 46% of the world’s population and over 36% of global GDP, based on various estimates.
Trump warned last week that “any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff.”
Speculation about a potential BRICS single currency has been ongoing in recent years. In 2023, Lula expressed support for a trading currency within the economic group, drawing comparisons to the euro.
While BRICS members deny plans for a single currency, they have intensified efforts to reduce reliance on Western currencies in bilateral trade.
This trend accelerated after Russia’s exclusion from the Western financial system and the freezing of its foreign reserves in 2022, due to sanctions related to Ukraine.
BRICS nations, including Russia, assert that the US is weakening the dollar by politicizing it through sanctions.
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