Why is Trump Afraid of BRICS?
Prakash Karat
The 17th BRICS Summit was held in Rio de Janeiro on July 6-7, the first summit with the expanded membership of eleven countries. Soon after, US President Trump threatened to impose 10 per cent tariffs on those countries that align with BRICS. Earlier too, Trump had threatened 100 per cent tariffs on BRICS countries saying that they wish to destroy the supremacy of the US dollar and weaken America. Why is Trump so threatened and provoked by BRICS?
BRICS originally comprised of five countries: Brazil, Russia, India, China and South Africa. It began in 2009 with the first four countries and South Africa joined a year later. BRICS was conceived to be a forum which would reflect the interests and aspirations of the global south. The five members of the BRICS constituted 40 per cent of the world’s population and a quarter of the world’s economy. At the 16th BRICS Summit in Johannesburg in 2024, it was decided to admit six more countries to the forum – Egypt, Ethiopia, Iran, Saudi Arabia, UAE and Indonesia. Now these eleven countries of BRICS put together represent 49.5 per cent of the world’s population, 40 per cent of the world’s GDP and 26 per cent of the world’s trade.
The BRICS is not a bloc or an alliance. It is a grouping of countries of the global south (Russia being the sole exception), which seeks to arrive at common positions on reform of multilateral institutions, trade, economic cooperation, climate change and technology. As such, BRICS has the potential to challenge the domination of the G-7 countries and Western imperialism over the institutions like the IMF, the World Bank, and trade and financial mechanisms. The BRICS emerged in the background of the global financial crisis of 2008 and became more relevant after the failure of G-20 to come out of the shadow of G-7 countries. The Rio de Janeiro Declaration has reflected the position of the global south clearly with regard to the two acts of aggression which have occurred. It has condemned the attacks on Iran’s sovereignty and nuclear sites, and it has strongly condemned Israel’s renewed attacks on Gaza and the blockade of food and humanitarian supplies. The declaration has also expressed serious concern over the rise of unilateral tariff and non-tariff measures, without naming the United States in this regard. It has also reiterated the long standing demand for greater voting powers for the major global south countries in the IMF and the World Bank, and for the representation of Brazil and India in the UN Security Council.
What has provoked the ire of President Trump is the way BRICS has been evolving steps and measures to lessen dependence on the dollar and loosen the grip of the US and G-7 countries over the multilateral financial institutions. With the United States increasingly utilising economic and financial sanctions against specific countries and excluding them from the international financial and banking systems, more and more countries sought to safeguard their interests through alternative arrangements. BRICS members have discussed trade in local currencies and currency swap arrangements. Steps for cross-border payments are also on the agenda. The Rio Declaration states that the leaders will task ministers of finance and central bank governors of their countries “to continue discussion on BRICS Cross-Border Payments Initiative, and acknowledge the progress made by the BRICS Payment Task Force (BPTF) in identifying possible pathways to support the continuation of discussions on the potential for greater inter-operability of BRICS payment systems.” Though there is no specific goal of an alternative currency arrangement, the limited steps to reduce dependence on the dollar is raising the red flag in the Trump administration.
That the BRICS is making gradual progress in setting up some alternative institutions is evident in the example of the New Development Bank (NDB). This was set up in 2015 with a capital of $100 billion and is headquartered in Shanghai. The bank seeks to provide loans for infrastructure projects rather than loans to repay loans. The bank has so far extended $36 billion for 98 infrastructure projects in BRICS member countries and other countries of the global south. At present the head of the bank is Dilma Rouseff, the former President of Brazil. Apart from the NDB, there is also the Contingent Reserve Arrangement (CRA) that consists of a common fund from amongst the BRICS central banks. The CRA offers support to a member country during a currency crisis.
There are critics from the Left who dismiss BRICS as of no consequence because it does not have a consistent anti-imperialist agenda. This criticism is misplaced. The BRICS is not an anti-imperialist platform. In so far as the forum articulates the position of the global south and initiates common endeavours which meet the development needs and aspirations of the global south, it will serve the purpose of strengthening multi-polarity. As the BRICS forum grows both in terms of reach and cohesion, it will be an expression of the contradiction that exists between the US-led imperialist order and the developing countries. Many of the BRICS members, including India, have strategic and economic ties with the United States. But, these countries are also objectively having a stake in a multi-polar world which will serve their national interests better. For such countries, participation in BRICS provides more opportunities to preserve a degree of strategic autonomy while still being aligned to the US-imperialist order.
The Trump presidency is witnessing unilateral acts of aggression in trade and all other spheres which is badly affecting countries of the global south; the trade war is not sparing even close allies like Canada, the European Union, Japan and South Korea. While this is weakening the US-led imperialist alliance, conversely the appeal of BRICS as an authentic forum for global south is increasing. More and more countries are aspiring to join BRICS. The Rio Summit introduced a new ‘partner countries’ category. Eight countries have been extended this partner status – Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda and Uzbekistan. With this innovation more countries of the global south have become associated with the forum.
The BRICS chairship is for a one year term. Brazil was the chair for 2025. Under the leadership of President Lula, some other significant steps were taken. The group introduced a new framework for joint action which signified the group’s coordinated position ahead of the United Nation’s upcoming Climate Change conference, known as COP30. On technology, the declaration advocated for more inclusive global discussions on Artificial Intelligence (AI) governance, echoing the concerns of the global south that are often under-represented in these debates. Another outcome was the proposal for a BRICS Multilateral Guarantees initiative, to facilitate infrastructural and development investment across the global south by providing investment guarantees to reduce risk.
The 2026 chair will be India and Modi has declared the theme to be, “Building Resilience and Innovation for Cooperation and Sustainability”. Despite all its professions to be the voice of the global south, the Modi government’s foreign and strategic policies have generally been aligned with the United States and Israel. Its current pre-occupation to make terrorism the primary agenda in all multi-lateral institutions based on its Pakistan-centric approach has also not been in tune with the overall concerns of the global south. It is keen to cement its role in the US sponsored QUAD. Yet, India is also being subject to the vagaries of Trumpism. However much it seeks to compromise with Trump’s aggressive demands, it will be at the receiving end of many of Trump’s blows.
The official stance of the government is that it seeks to promote multipolarity. In the recent period, India and China have taken joint steps to reduce tensions on the border and begin the process of restoring economic and travel ties. This should remove hindrances to a smoother cooperation within the BRICS forum. It is to be hoped that the Modi government will utilise the BRICS leadership position to pursue an agenda which will promote the collective interests of the global south and rebuff all attempts to weaken the alternative policies and mechanisms which have been set in motion.
