By Angelo Giuliano
In a bold move amid escalating trade tensions, Brazilian President Luiz Inácio Lula da Silva has called for a collective BRICS response to the latest U.S. tariffs imposed by President Donald Trump. On August 6, 2025, Lula announced plans to discuss a joint strategy with leaders including India's Prime Minister Narendra Modi and China's President Xi Jinping, rejecting direct negotiations with Trump as "humiliating." This follows Trump's 50% tariffs on Brazilian and Indian goods, tied to demands like halting prosecutions of former Brazilian leader Jair Bolsonaro, highlighting growing friction between the Global South and Washington.
Lula's call underscores the BRICS alliance's increasing cohesion and political assertiveness. Founded in 2009 as a loose economic grouping of Brazil, Russia, India, China, and South Africa, BRICS has evolved significantly, especially after its 2024 expansion to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Now representing over 45% of the world's population and nearly 30% of global GDP, the bloc is no longer dismissed as fragmented. This action signals to Washington that BRICS members are prepared to resist unilateral economic pressure and are committed to advancing a multipolar international order challenging U.S. dominance. As Lula stated, "There is no coordination among the BRICS yet, but there will be," emphasizing collective strength.
BRICS possesses several potent countermeasures. First, accelerating local currency settlements in bilateral trade could reduce reliance on the U.S. dollar, with initiatives like Russia's ruble-based payments and China's yuan internationalization already underway. Second, strengthening the New Development Bank (NDB), established in 2015, offers alternatives to Western institutions. Third, developing alternatives to the SWIFT system, such as the BRICS Bridge payment platform announced at the 2025 Rio Summit, could bypass U.S.-controlled networks. Finally, a coordinated WTO challenge against U.S. tariffs, as Brazil has initiated, could expose Washington's trade violations. These steps could undermine the U.S. dollar's dominance, raising U.S. borrowing costs and eroding its geopolitical leverage, potentially shaving trillions off U.S. economic influence over time.
BRICS appears increasingly prepared to challenge U.S. hegemony, driven by years of institution-building, like the NDB and the Contingent Reserve Arrangement for financial crises. The bloc's expanded economic weight provides leverage. The timing is catalyzed by U.S. tariffs and sanctions, unifying BRICS against perceived economic bullying. Lula's leadership during Brazil's 2025 BRICS presidency amplifies this push, focusing on multilateralism over unilateralism.
U.S. policymakers appear to have underestimated BRICS, historically viewing it as a fragmented grouping of disparate economies with conflicting interests, such as India's ties to U.S. alliances like the Quad. This miscalculation ignored BRICS' growing GDP share and political cohesion, fueled by shared grievances like sanctions on Russia and Iran. Trump's tariffs, meant to divide, instead rallied BRICS unity, as seen in the 2025 summit's focus on de-dollarization and alternative trade systems.
This signifies a long-term geopolitical realignment toward a multipolar world, not merely a tactical reaction. Driven by BRICS' expanded influence, this shift could weaken U.S. dollar hegemony and reshape global governance. Initiatives like a blockchain-based payment system and calls for UN and IMF reforms signal a profound challenge to U.S. dominance. While BRICS' unity will be tested in the coming months, the message is clear: the era of unchallenged U.S. supremacy is waning. As the bloc pushes for reforms and alternative financial systems, the world order is tilting away from unipolar dominance, marking a pivotal moment in global geopolitics.
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