Why Is Trump Targeting BRICS?

Rapid Summary:

• U.S. President Donald Trump has threatened to impose an additional 10% tariff on countries aligning with the BRICS group.
• His concerns focus on BRICS’ discussions of using local currencies for cross-border payments and perceived efforts towards “de-dollarisation.”
• The BRICS summit in Rio de Janeiro this week included expanded membership with Egypt, Ethiopia, Indonesia, Iran, and the UAE participating.
• TrumpS administration recently imposed higher tariffs (50% on brazil; 30% on South Africa) citing unrelated political and trade issues.
• India has denied support for replacing the U.S.dollar despite being part of BRICS discussions; External Affairs Minister S. Jaishankar clarified India’s stance against attempts to unify alternatives to the dollar.

Indian opinion Analysis:

The issue highlights evolving dynamics between emerging economies and established superpowers like the U.S., exacerbated by disagreements around currency usage in international trade. While Trump’s strong rhetoric underscores concerns over de-dollarisation’s possible geopolitical impacts,statements from several BRICS nations-including India-indicate that their initiatives primarily aim at facilitating regional trade rather than a direct challenge to global financial systems led by the dollar.

India’s nuanced stance reflects its balancing act: maintaining cooperation within BRICS while preserving its strategic relationship with Washington as negotiations for a Free Trade Agreement continue. Potential implications involve strained trade ties between member countries targeted by tariffs versus opportunities among non-dollar trading partners seeking greater autonomy from Western sanctions systems.

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