BRICS+: Opportunities, Challenges, and Trump's Tariff Threat

The BRICS States – a growing block of emerging economies – are attracting increasing attention despite geopolitical tensions. With the recent accession of Indonesia and other candidates, the dynamics of the group, originally consisting of Brazil, Russia, India, China, and South Africa, are becoming evident. Yet, while BRICS+ is asserting itself more on the international stage, new threats from Washington loom.

Trump vs. BRICS: Tariff Threats in Focus

Donald Trump, shortly before taking office, threatened BRICS members with 100% tariffs should the alliance challenge the dominance of the US dollar. The background to this threat is the ongoing debate over de-dollarization and alternative payment systems. Russia and China, in particular, are driving this agenda: The idea of a common BRICS currency was discussed at the 2024 summit in Kazan, as well as strengthening trade structures in local currencies. However, despite these ambitions, the US dollar remains dominant, as financial markets and global trade continue to be strongly tied to the “greenback.”

China’s Key Role and Internal Challenges

China plays a central role in the BRICS alliance, not least due to its economic strength. With initiatives such as duty-free trade agreements for developing countries, Beijing is expanding its influence. Analysts emphasize that China is ready to mitigate economic pressure from US tariffs and promote alternative trade routes. However, China’s dominance within BRICS remains a controversial issue. Many member states are cautious about potential dependencies and seek balance.

Is BRICS a “Game-Changer”?

Critics argue that the alliance lacks a clear strategy and coherent collaboration. Although the Kazan summit sparked numerous discussions, there were few concrete results. For the moment, BRICS remains more of a “discussion forum” than a real threat to the US, according to experts. However, the growing number of members signals a long-term shift in the global economic order.

Opportunities for Investors in BRICS+

Despite all the challenges, the BRICS+ block offers immense opportunities:

- Diverse Resources: Brazil, Russia, and South Africa provide access to critical raw materials.

- Growing Markets: India and China remain global leaders in technology and consumer goods.

- New Trade Routes: Cooperation among BRICS+ members creates stable trade routes away from geopolitical tensions.

For investors, the BRICS states represent long-term stability and diversification – an attractive option in times of global uncertainties.