- Alexander Babakov argues Trump’s proposed tariffs on de-dollarizing nations would be economically unfeasible for the U.S. market.
- Tools like BRICS Pay and the gold-backed stablecoin Unir enhance trade capabilities while reducing reliance on the U.S. dollar.
- BRICS aims for financial independence through local currencies, digital assets, and systems like SPFS to replace traditional networks.
Donald Trump’s proposal to impose tariffs on countries pursuing de-dollarization has been dismissed as “unlikely” by Alexander Babakov, Vice Chairman of the Russian State Duma. BRICS nations—Brazil, Russia, India, China, and South Africa—continue working on strategies to reduce reliance on the U.S. dollar in global trade.
Babakov, in an article published by Iz, argued that imposing such tariffs could backfire on the United States due to its economic interdependence with BRICS members.
He cited potential disruptions in key sectors such as electronics, raw materials, and agricultural products as primary concerns.
If implemented, these tariffs could lead to retaliatory measures from BRICS nations, escalating into a tariff war and causing inflationary pressures within the U.S. economy.
BRICS nations are advancing payment systems that reduce reliance on the dollar without requiring a single unified currency. Babakov emphasized that the use of local currencies, central bank digital currencies (CBDCs), and digital assets already provides effective tools for this transition.
A central component of this strategy is BRICS Bridge, a crypto payment platform designed to integrate CBDCs from participating nations. This platform aims to enhance cross-border transaction efficiency by reducing costs, eliminating intermediaries, and accelerating payment processes. Among the CBDCs under development are Russia’s digital ruble, China’s digital yuan, and Brazil’s DREX.
Additional tools include BRICS Pay and the Financial Message Transfer System (SPFS), which offer alternatives to traditional financial networks. Another key development is the exploration of a gold-backed stablecoin, the Common Unit of Account (Unir). These instruments collectively support the group’s long-term goal of financial independence and streamlined trade.
Babakov concluded that BRICS initiatives to diversify financial mechanisms not only align with their de-dollarization goals but also minimize the economic risks associated with such transitions. The interconnected nature of the global economy, paired with BRICS’ growing financial infrastructure, makes Trump’s proposed tariffs increasingly challenging to implement.
By focusing on efficient digital payment systems and alternative financial frameworks, BRICS is steadily advancing toward its goal of reshaping international trade practices.
