In 2025, the global landscape has shifted dramatically from what it was a decade ago. Traditional tactics like tariffs and sanctions are no longer the tools some nations believe they are, as evidenced by recent developments within the BRICS and G20 nations.
U.S. President Donald Trump made headlines by threatening a 100% tariff on BRICS nations should they continue their efforts to move away from the U.S. dollar. \"As a BRICS nation … they'll have a 100 percent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately,\" Trump declared on his inauguration day.
However, the Chinese Ministry of Foreign Affairs quickly countered this stance, emphasizing that BRICS is focused on cooperation and shared prosperity rather than confrontation. The global sentiment is shifting away from reliance on a single currency and sanction-based pressures.
Take Russia as an example. Facing significant sanctions from the West in 2014 and 2022, many predicted an economic downfall. Contrary to expectations, Russia developed its financial alternatives, including the System for Transfer of Financial Messages (SPFS) and the Mir payment card, reducing its dependence on Western financial systems.
Similarly, TĂĽrkiye has responded to U.S. restrictions by developing its own military technologies and expanding its exports to Middle Eastern and African nations. These efforts highlight a broader trend of nations seeking more equitable global economic structures.
The G20 Summit in Brazil last year marked a historic moment with the African Union's full membership, signaling a more inclusive and diversified bloc. BRICS nations are also leading the charge by trading in their national currencies and establishing the BRICS New Development Bank to finance projects without relying on Western institutions.
The shift is not merely political but pragmatic. Over-reliance on the U.S. dollar has shown its vulnerabilities, from the 2008 financial crisis to the pandemic-induced recession. As nations diversify their economic strategies, the dominance of sanctions and a single currency is diminishing, paving the way for a more balanced global economy.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
cgtn.com
