Trump's Tariff Gamble: BRICS Trade Tensions Escalate

US President Donald Trump's proposed 10% tariff on BRICS nations for non-dollar trade overlooks the impact of US sanctions, forcing countries like India and China to trade in local currencies. The GTRI highlights that countries resorted to non-dollar trade as a survival mechanism against US geopolitical actions.

In a move that could further strain international trade relations, US President Donald Trump has suggested a 10% tariff on BRICS nations conducting business in non-dollar currencies. Analysts argue this overlooks the unintended consequences of US sanctions that have driven countries like India and China to pivot to local currencies for trading.

The Global Trade Research Initiative (GTRI) highlights that US actions, including sanctions and SWIFT bans, blocked dollar-based payments, prompting nations to seek alternative payment routes. Countries, such as Russia and China, now manage significant trade volumes in local currencies, minimizing reliance on the US dollar.

GTRI's Founder Ajay Srivastava emphasizes the necessity rather than defiance: diversified currency trade is a means to mitigate economic challenges posed by sanctions. As countries like India adjust payment strategies for Russian oil, the international community watches the evolution of global trade dynamics.

(With inputs from agencies.)