Donald Trump imposed tariff threats on BRICS, declaring the group “dead,” yet it continues to expand. A recent summit in Brazil saw participation from 10 members and 10 partners, where discussions focused on dedollarization, decolonization, trade and investment in local currencies, and fostering a more multipolar global order.
The Global South-led organization BRICS has been expanding both in size and influence, causing concern among some Western politicians.
Donald Trump, in particular, seems quite unsettled. Upon his return to the White House for a second term as US president, Trump threatened steep tariffs on BRICS and erroneously claimed to have dismantled the organization.
“BRICS is dead,” Trump cried during a press conference on February 13. The US president stated:
“BRICS was established for a negative purpose, and most of its members now shy away from discussing it; they’re afraid to even mention it. I made it clear that if they try to undermine the dollar, they’ll face a 100% tariff immediately upon expressing such intentions. They’ll end up pleading with us not to impose this.
BRICS ceased to exist the moment I addressed this issue. It effectively died when I brought it up.
I recall Obama and Biden, particularly Biden, suggesting that BRICS had us cornered. But that’s not true; we have the upper hand.
If BRICS wants to challenge us, those nations will simply cease trading with us, and any trade that does occur will be subject to at least a 100% tariff.”
Trump’s assertion that “BRICS is dead” couldn’t be more inaccurate. In reality, the opposite is true: BRICS is steadily expanding.
2025 BRICS Summit in Rio de Janeiro, Brazil
In July, delegates from BRICS countries convened in Brazil for their annual summit. This gathering marked the first time that the 10 partner countries, added to BRICS in 2025, attended alongside the new members admitted in 2024.
BRICS now comprises 20 countries.
The 10 BRICS members include the original five—Brazil, Russia, India, China, and South Africa—along with Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
The 10 BRICS partners are Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam.
The 2025 BRICS summit in Rio de Janeiro was historic, marking the first-time participation of Vietnam, which joined the group in June.
Earlier reports from Geopolitical Economy highlighted attempts by the US government to create a rift between China and Vietnam in an unsuccessful effort to align Hanoi with Washington’s new Cold War against Beijing.
Vietnam’s choice to join BRICS clearly demonstrates its commitment to maintaining an independent and non-aligned foreign policy.
Furthermore, during the BRICS summit in Brazil, Reuters reported that Vietnam’s Prime Minister Pham Minh Chinh and China’s Premier Li Qiang had a cordial meeting, where they “agreed to enhance trade and investment ties.”
The 2025 BRICS summit also included the participation of Cuba’s President Miguel Díaz-Canel.
This was symbolic, considering that Cuba has endured illegal US sanctions and a harsh blockade for over 60 years, despite the fact that nearly every country in the United Nations General Assembly annually votes to call for an end to the unlawful US embargo.
The vision of BRICS for a more multipolar world, where the Global South holds equal standing and the colonial powers of the Global North no longer enjoy an unfair “exorbitant privilege,” is highly appealing to most countries worldwide.
Even Mexico, the United States’ top trading partner and southern neighbor, participated in the BRICS summit in Rio de Janeiro.
Under the leadership of Mexico’s progressive President Claudia Sheinbaum, Foreign Secretary Juan Ramón de la Fuente was sent to Brazil to take part in the summit, despite Mexico not being an official member or partner of BRICS.
The Mexican government announced that it had been invited to participate as an “observer” by Brazil, which holds the rotating BRICS presidency for 2025.
Trump Threatens Additional Tariffs on BRICS Countries
The US president appeared clearly unsettled by the BRICS summit in Brazil on July 6, as he took to his website, Truth Social, to issue threats against the organization.
“Any country aligning itself with the anti-American policies of BRICS will face an ADDITIONAL 10% tariff,” Trump wrote.
“There will be no exceptions to this policy,” he added.
The 10% tariff threat marked a significant decrease from the 100% duty that Trump had initially promised to impose on BRICS countries.
Brazil’s President Lula da Silva responded to Trump’s threats, suggesting that the US president was attempting to assume the role of a global “emperor.”
“The world has changed. We don’t want an emperor,” Lula stated.
“This is a group of countries seeking an alternative approach to organizing the world economically,” Lula added. “I believe that’s why BRICS is making people uncomfortable.”
Trump Incorrectly Stated That Spain Is Part of BRICS
It is important to note that Trump doesn’t fully grasp the concept of BRICS.
During a White House press conference in January, Trump once more threatened BRICS and inaccurately claimed that Spain is a member of the Global South-led organization. The European nation has never been involved.
Trump remarked:
“Spain is a BRICS nation. Do you know what a BRICS nation is? You’ll figure it out. But if the BRICS nations choose to do that, that’s fine, but we’ll impose at least a 100% tariff on their business with the United States.
You know what BRICS is, right? You all know what I mean, you know what I’m talking about.”
BRICS: 44% of Global GDP (PPP), 56% of World Population
The US government’s apprehension towards BRICS stems from the growing influence of this Global South-led organization.
With its 20 members and partners, BRICS now accounts for over two-fifths of the global economy, representing 43.93% of world GDP when measured at purchasing power parity (PPP).
The BRICS 20 collectively have a population of 4.45 billion, accounting for 55.61% of the global population, which represents the majority of the world.
BRICS Explores Dedollarization
A central topic at the 2025 BRICS summit was dedollarization—the pursuit of creating alternatives to the US dollar as the global reserve currency.
Brazil’s left-wing President Lula da Silva has long championed dedollarization.
“The world needs to discover a way for our trade relations to bypass the dollar,” Lula remarked at the BRICS summit.
“Naturally, we must approach this responsibly and carefully. Our central banks need to engage with those from other countries,” the Brazilian leader explained, as reported by Reuters. He further noted, “This is a gradual process until it becomes fully established.”
Lula acknowledged that dedollarization is “complicated” and will be a slow, gradual process, yet he emphasized its necessity.
At the 2025 BRICS summit, the Brazilian president reiterated his call for the establishment of a new global currency to challenge the US dollar.
“That’s why your discussion on the need for a new trade currency is crucial. Is it complicated? I know. There are political challenges. But if we don’t discover a new formula, we’ll conclude the 21st century the same way we started the 20th. And that won’t benefit humanity,” Lula stated.
BRICS Initiatives to Promote Dedollarization
On July 6, 2025, during the summit, the 20 BRICS members and partners signed an extensive joint statement. The Rio de Janeiro Declaration spanned 31 pages and contained 126 points, covering a wide range of topics.
The joint declaration highlighted numerous BRICS initiatives aimed at promoting dedollarization.
It advocated for strengthening the BRICS bank, the New Development Bank (NDB), to “enhance its role as a robust and strategic agent of development and modernization in the Global South.”
Specifically, the document stressed the importance of the NDB “expanding local currency financing.”
Additionally, the BRICS declaration urged the further development of the Contingent Reserve Arrangement (CRA) as a potential alternative to the US-dominated International Monetary Fund (IMF), providing short-term liquidity to countries experiencing balance-of-payments crises.
Another initiative highlighted was the New Investment Platform (NIP), designed to facilitate investments in local currencies rather than in US dollars, British pounds, or euros.
The declaration also addressed the BRICS Interbank Cooperation Mechanism (ICM), which is focused on “finding acceptable mechanisms for financing in local currencies.”
The joint statement underscored the efforts of the BRICS Cross-Border Payments Initiative and BRICS Payment Task Force (BPTF). It noted their work in identifying “the potential for greater interoperability of BRICS payment systems” as part of efforts to enable “fast, low-cost, more accessible, efficient, transparent, and safe cross-border payments among BRICS countries and other nations,” which can support increased trade and investment flows.
BRICS New Development Bank Expands
The current head of the BRICS bank is Dilma Rousseff, the former president of Brazil from Lula’s left-wing Workers’ Party.
Rousseff announced that two additional countries had joined the New Development Bank: Colombia and Uzbekistan.
Colombia’s accession was particularly symbolic, given that the South American nation has historically been one of the closest allies of the United States.
Under its first-ever left-wing president, Gustavo Petro, Colombia has adopted a more non-aligned foreign policy and expressed support for BRICS.
Just days before the BRICS summit, leaked audio recordings revealed the US government’s involvement in a coup attempt against Colombia’s democratically elected left-wing leader.
With the inclusion of Colombia and Uzbekistan, the New Development Bank now comprises 11 members: the founding five—Brazil, Russia, India, China, and South Africa—along with the United Arab Emirates, Bangladesh, Egypt, Algeria, Colombia, and Uzbekistan.
BRICS Encourages Trade, Investment, and Lending in Local Currencies
During her remarks at the BRICS summit, Dilma Rousseff emphasized the New Development Bank’s efforts to promote financing in local currencies.
“Any business or government borrowing in foreign currency becomes subject to decisions made by the Federal Reserve or other central banks in developed nations,” she cautioned, highlighting the risks of exchange-rate fluctuations and currency volatility.
As a positive example of an alternative approach, the BRICS website noted that Dilma “highlighted a project in Brazil funded directly in renminbi, bypassing the need for dollar conversion.”
The official BRICS summary of Dilma’s speech underscored that “local-currency operations will remain an absolute priority as a means of building a more diverse, balanced international financial system.”
The process of dedollarization will be gradual, the NDB president stressed. The dominance of the US dollar as the global reserve currency won’t end overnight. “But the rise of initiatives to expand trade in local currencies is undeniable, and I see that as a positive development,” Dilma explained.
BRICS Continues the Legacy of the Non-Aligned Movement and Bandung Conference
In their speeches at the 2025 summit, several leaders from the Global South highlighted that they view BRICS as continuing the legacy of the Non-Aligned Movement and the anti-colonial Bandung Conference of 1955.
Brazil’s President Lula asserted that “BRICS is an indispensable actor in the pursuit of a multipolar, less asymmetrical, and more peaceful world.”
He expressed regret that the US-dominated international financial system disproportionately benefits wealthy colonial powers at the expense of poorer, formerly colonized nations.
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