-By Charvi veda &
Krish Raj
At 78-year-old, Mr. Trump is one of only two U.S. presidents to have elected to a non-consecutive second term. Trump is set for a powerful comeback, ready to take on the BRICS currency challenge and defend the dollar’s global throne.
Trump adopts an aggressive stance against BRICS, viewing their currency plans as a direct challenge to American supremacy. On a recent Trump tweet, he signaled a fierce stance against the BRICS currency initiative, vowing to defend the U.S. dollar with unyielding resolve.
“We require a commitment from these countries that they will neither create a new BRICS Currency, nor back any other Currency.” Trump’s demand for BRICS to abandon their new currency plans puts them at a crossroads. The group seeks financial independence from the dollar, but his threat of 100% tariffs and losing access to the U.S. market forces them into a tough choice: pursue economic sovereignty or face severe repercussions.
They can go find another “sucker”, he is making it clear that the U.S. economy is irreplaceable, any country trying to move away from the dollar will lose out on the immense opportunities offered by the American market.
“There is no chance that the BRICS will replace the U.S. Dollar in International Trade,” Trump’s warning might sound like a threat, but it only strengthens the resolve of BRICS nations. They’re pushing for a shared currency to lessen their dependency and create a new balance in global trade. This bold step challenges the dollar’s long reign.
A New Era on the Horizon: The rise of a BRICS currency could challenge the $22 trillion trade market dominated by the U.S. dollar for over 75 years. This shift isn’t just a financial move; it’s a sign that the global economic order is ready for change.
Price Tag for the U.S.: Trump’s 100% tariff threat could drive up import costs like pharmaceuticals by 10-20%, pushing inflation past 4% and squeezing American consumers. Such a move would increase living costs and strain millions of households.
Strengthening BRICS Unity: Trump’s aggressive stance might strengthen BRICS’ resolve. Countries like China and Brazil are already cutting dollar dependence, and the addition of new members in BRICS Plus shows nations are committed to diversifying their economic power.
A Fragile Future for the Dollar: The dollar’s dominance, currently at 59% of global reserves, is being tested. China’s digital yuan and other alternatives are gaining ground, signaling a potential shift toward a multipolar economic system that could redefine global power for decades.
THE IMPACT OF TRUMP'S "AMERICA FIRST" POLICIES ON U.S. - INDIA RELATIONS AND THE GLOBAL ORDER
Trump’s Influence on U.S.-India Relations: Under Trump’s "America First" policies, U.S.-India relations could see both new opportunities and challenges. The trade restrictions may hit Indian exports because they aim to lessen dependence on foreign economies; tech exports may be particularly hurt. On the contrary, as the withdrawal of dependency on China by U.S. opens avenues for Indian manufacturers and tech companies, exposure to the defense agenda under Trump, chiefly in the Indo-Pacific region, may facilitate collaborations through frameworks such as the Quad. On the other hand, stricter H-1B visa restrictions could mar the IT industry in India, a matter of great concern to India.
India’s Position on BRICS Currency: India has adopted a rather cautious tone on the BRICS currency, reflecting very complex economic and geopolitical realities faced by the country. Because of tensions with China, logistical issues, and competing priorities in BRICS, India must tread carefully when assuming a position. India's IT sector is, of course, heavily dependent on the U.S. market, even as it navigates China's push for greater influence within the group, which is often at crossroads with India's desire for more independence and fair representation. As such, India cannot be easily persuaded to move away from the U.S. dollar and into a BRICS currency, especially given the risks involved for its export-driven economy. The reluctance is paralleled with indiscernible India's action in line with international collaboration yet protectionist about its national needs to be in alignment with Trump's socialist "America First" thinking.
Transition to a Multipolar World: In anticipation of a multipolar world and power-sharing that will no longer rest on only one or two superpowers, experts increasingly say that this will lead to a higher role or weightage in world affairs which will be accounted for by countries such as India, the European Union, and Japan in a possible scenario where the U.S. and China remain the heavyweights. The U.S. might continue as the sole military superpower in the far future, but possibly, global influence will shift to become an even more complicating geopolitical equations. Cooperation and competition among many power centers would emerge as possible competition for influence over the world.
Conclusion: Shifting Dynamics within BRICS and the Dollar’s Future: The rise of BRICS will soon become a challenge to the seemingly U.S.-centric global order that Trump envisions. India, for instance, is looking for alternatives to the dollar. This, however, will not hugely redefine the face of the global financial system just yet. Perhaps India's wait-and-see approach regarding a BRICS currency is wise because the country's interests must be insulated against that of the U.S, given its heavy reliance on U.S. trade. But with the world tilting away toward a new multipolar design, other emerging power centers may afford India a chance to flaunt its growing influence along with other emerging giants such as China and Russia.
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