Context:

US President Donald Trump has escalated his global trade war by targeting the BRICS group, threatening 10% tariffs on goods imported from member countries like Brazil, Russia, India, China, and South Africa, among others. Trump's focus on BRICS arises from his suspicion that the group aims to undermine the US dollar and establish a new global financial standard. The BRICS nations, while diverse in their political and ideological orientations, share a common interest in reforming the global power balance, which they perceive as skewed towards the US and its allies. Despite the BRICS group's potential to counter US influence, internal differences and varying national interests challenge its cohesiveness and effectiveness. The group's latest summit in Rio de Janeiro highlighted concerns over unilateral trade measures, reflecting shared apprehensions about Trump's aggressive trade policies.

Dive Deeper:

• President Trump has recently threatened to impose 10% tariffs on goods imported from BRICS countries, considering their alignment with anti-American policies as a basis for these duties. His threats come amidst the group's ascension and expansion, adding new members such as Egypt and Indonesia, which could potentially shift global economic dynamics.

• Trump's primary concern with BRICS centers around its perceived threat to the US dollar's dominance, fearing that the group could initiate a currency regime that undermines the dollar's status as the global standard. Although a BRICS currency has been suggested, the group has focused more on expanding trade in national currencies, which could reduce global dollar dependence.

• The BRICS group, consisting of countries like Brazil, Russia, India, China, and South Africa, was initially formed in response to the US financial crisis, aiming to enhance the role of emerging markets in the global economy. The group now includes diverse political systems, from authoritarian regimes to vibrant democracies, which sometimes complicates consensus-building.

• Despite internal differences, BRICS nations are united by the belief that the current global power structure is overly favorable to the US and its European allies, prompting calls for reform. This shared viewpoint has led to initiatives like the establishment of a development bank and support for greater roles for Brazil and India in global institutions like the UN Security Council.

• Trump's trade war has inadvertently served as a unifying factor for BRICS, with the group expressing serious concerns over rising unilateral tariffs and non-tariff measures. Their joint declaration during the Rio summit highlighted these issues, signaling a collective stand against the US's aggressive trade policies.

• The BRICS nations are exploring alternatives to the US dollar in global trade, with China particularly interested in promoting the renminbi and reducing financial dependence on the US. However, developing a multi-polar monetary system presents numerous technical and political challenges that would require gradual and careful implementation.

• Internal tensions within BRICS are evident, as seen in differing national priorities and the absence of top leaders from countries like China and UAE at recent meetings. These discrepancies suggest that while the group has potential as a counterbalance to US power, its internal dynamics could limit its effectiveness in achieving unified goals.