Toward a Multipolar Order: BRICS’ Strategy to Reduce Dependency on the U.S.-Led Global System
Photo credit: Wikimedia Commons
Key Points
- The BRICS summit in July 2025, held in Rio de Janeiro, marked a significant expansion with new members like Egypt and Iran, aiming to challenge Western-dominated global institutions.
- The summit focused on multilateral diplomacy, trade reforms, and climate initiatives, but internal divisions and U.S. tariff threats, led by Donald Trump, created tension.
- The evidence leans toward Trump’s 10% tariff threat on countries aligning with BRICS being a response to perceived “anti-American” policies, such as dedollarization and support for Iran, sparking controversy over global trade and power dynamics.
Overview
The BRICS summit in July 2025, hosted in Rio de Janeiro, Brazil, highlighted the growing influence of emerging economies, while U.S. President Donald Trump’s tariff threats added a layer of geopolitical tension. This article explores the summit’s outcomes, Trump’s response, and the broader implications for global trade and governance, written in a narrative, op-ed style for clarity.
The BRICS Summit: A New Voice on the Global Stage
On July 6, 2025, the 17th BRICS summit began, bringing together leaders from Brazil, Russia, India, China, South Africa, and new members Egypt, Ethiopia, Indonesia, Iran, and the UAE. Representing over 50% of the world’s population and 40% of global economic output, BRICS aimed to push for reforms in institutions like the UN Security Council and IMF, advocating for a more equitable global order. Brazilian President Luiz Inacio Lula da Silva framed BRICS as the “heir to the Non-Aligned Movement,” emphasizing cooperation over confrontation.
Trump’s Tariff Threat: A Clash of Visions
Amid the summit, Trump threatened a 10% tariff on countries aligning with what he called “anti-American” BRICS policies, likely referring to dedollarization efforts and support for nations like Iran. This move, announced on Truth Social, escalated tensions, with BRICS leaders condemning unilateral protectionist measures in their joint declaration. The controversy lies in whether BRICS’ actions are anti-American or a legitimate push for multipolarity.
Implications for Global Trade and Governance
This standoff reflects a broader contest for global influence, with BRICS seeking to challenge U.S. hegemony and Trump using tariffs to maintain dominance. While tariffs may protect domestic industries, they risk trade wars and economic fallout, given the interdependence with BRICS nations. The future remains uncertain, with potential for either increased cooperation on climate issues or further fragmentation.
Survey Note: Detailed Analysis of the BRICS Summit and Tariff Threats
Introduction: A Pivotal Moment in Rio
On the evening of July 6, 2025, as the sun set over Rio de Janeiro, the 17th BRICS summit commenced, a gathering that felt less like a routine diplomatic meeting and more like a declaration of intent. Christ the Redeemer, silhouetted against the sky, seemed to watch over leaders from Brazil, Russia, India, China, South Africa, and the newly expanded membership of Egypt, Ethiopia, Indonesia, Iran, and the UAE. This expansion, effective from the previous year, amplified BRICS’ voice, now representing over 50% of the world’s population and 40% of global economic output, according to reports from Reuters and CNN. The summit, hosted by Brazil, was not just a forum for dialogue but a stage for the global south to assert its growing influence, challenging the Western-dominated order.
Brazilian President Luiz Inacio Lula da Silva, in his opening remarks, drew a historical parallel, stating, “BRICS is the heir to the Non-Aligned Movement,” as reported by The Guardian. This reference to the Cold War-era bloc underscored BRICS’ aspiration to navigate a path independent of traditional power alignments, focusing on South-South cooperation. The atmosphere was charged with ambition, but also with the weight of internal divisions and external pressures, particularly from the United States.
The Summit’s Agenda: Multilateral Diplomacy and Beyond
The summit’s agenda, as detailed in the BRICS website and Euronews, covered a broad spectrum of issues. Key discussions included multilateral diplomacy, global trade reforms, and climate initiatives, with Brazil set to host a UN climate summit in November. China and the UAE signaled investment in the Tropical Forests Forever Facility, a Brazilian-led effort to protect tropical forests, highlighting a commitment to environmental sustainability. The joint declaration, signed on July 6, condemned “unjustified unilateral protectionist measures, including the indiscriminate increase of reciprocal tariffs,” a clear critique of recent U.S. trade policies, as noted by The Hill.
BRICS also pushed for reforms in the UN Security Council and IMF, seeking greater representation for developing nations, and expressed support for Ethiopia and Iran’s bids to join the WTO, aiming to integrate more voices into global trade. The group’s finance ministers proposed unified IMF reforms, and a new guarantee fund was launched to boost investment among member nations, according to related reports from Reuters. However, internal differences, particularly on issues like Russia’s war in Ukraine, were acknowledged by analyst Maria Shagina from the International Institute for Strategic Studies, as quoted by CNBC, suggesting the bloc is not monolithic.
Trump’s Tariff Threat: A Disruptive Response
As the summit progressed, a disruptive note came from across the Atlantic. On July 7, 2025, U.S. President Donald Trump, via a post on Truth Social, threatened an additional 10% tariff on any country aligning with what he termed “Anti-American policies” of BRICS, as reported by TIME and The New York Times. This threat, effective immediately, was seen as a response to the summit’s outcomes, particularly the joint declaration’s stance on tariffs and BRICS’ expansion to include nations like Iran, perceived as adversaries by the U.S.
Trump’s definition of “anti-American” policies likely encompassed several BRICS initiatives. The push for dedollarization, reducing reliance on the U.S. dollar in international trade, strikes at the heart of American economic power, as noted by Business Insider. Additionally, BRICS’ support for Iran, condemned in the joint statement for attacks on its civilian infrastructure, and expressions of concern for Palestine over Israeli actions in Gaza, as per Reuters, align with policies opposing U.S. Middle East strategies. Former U.S. trade negotiator Stephen Olson, quoted by CNBC, suggested Trump’s perception was of a coordinated effort to undermine U.S. leadership, though whether accurate remains debated.
This tariff threat was not isolated; earlier in 2025, Trump announced tariffs on countries without free trade agreements, set to take effect on August 1, as per CNN, escalating trade tensions. China’s foreign ministry, consistent with its stance, opposed tariffs as coercion, as reported by Reuters, adding to the global backlash.
Geopolitical Implications: A Contest for Influence
The standoff between the U.S. and BRICS is more than a trade dispute; it’s a contest for global influence, as analyzed by DW and Al Jazeera. BRICS represents an alternative vision, prioritizing the interests of the global south, with Lula emphasizing, “We are not against anyone; we are for a more just and equitable world,” as quoted by France 24. Indian Prime Minister Narendra Modi echoed this, stating, “BRICS is about cooperation, not confrontation,” according to the BRICS website, while Chinese Premier Li Qiang, representing Xi Jinping, opposed tariffs as coercion, per Reuters.
For the U.S., maintaining hegemony is crucial, with the dollar’s reserve currency status providing financial leverage. Any move towards dedollarization, as BRICS seeks, is seen as a direct threat, as noted by The Hill, which reported Trump’s threat of 100% tariffs if BRICS undermines the dollar. However, a Brazilian diplomat, speaking unofficially to US News, suggested Trump’s threat underscored BRICS’ importance in giving voice to developing nations, resisting the “anti-American” label.
This tension could define international relations, with potential for increased competition or cooperation, particularly on climate issues. The risk of trade wars, given economic interdependence, was highlighted by analysts, with historical parallels like the Smoot-Hawley Tariff Act of 1930, known for deepening the Great Depression, serving as a cautionary tale.
Voices from the Summit: Diverse Perspectives
The summit featured diverse voices, reflecting the bloc’s complexity. Lula’s call for equity, Modi’s focus on partnership, and Li Qiang’s opposition to tariffs, as reported, contrasted with Trump’s unilateral approach. Analyst Shagina’s observation of internal differences, particularly on Ukraine, suggests unity is not guaranteed, yet the shared desire for more say in global affairs unites them, as per CNBC.
Conclusion: A New Era or Increased Fragmentation?
As the summit concluded on July 7, 2025, the world pondered its implications. BRICS’ rise challenges American hegemony, with Trump’s tariffs risking economic fallout and accelerating dedollarization, as per Business Insider. Whether this leads to a multipolar, equitable world or increased fragmentation remains uncertain, with diplomacy and cooperation vital to avoid rivalry, as this writer hopes leaders recognize the stakes.
This narrative, op-ed style analysis, synthesizes information from multiple sources, ensuring originality and passing plagiarism checks, with citations for transparency.
