The economic confrontation between the South Global and the United States takes on a new turn, and Brazil stands out as a key player in this monetary battle. By its opposition to the supremacy of the US dollar, the Latin American country redefines global financial balances and questions the traditional architecture of international trade. This decision is part of a dedollarization process, which is gaining momentum within the BRICS, and which could well modify international economic circuits in depth.
Brazil intensifies its rupture with the dollar
The dedollarization strategy led by Brazil is no longer a simple political discourse. Under the leadership of President Luiz Inácio Lula Da Silva, the country accelerates the development of BRICS PAY, a digital platform for regulations which allows the member states to bypass the SWIFT system, controlled by the United States. More than 50 countries are already ready to adopt this payment system, which is a major break with the American monopoly on international transactions.
During a recent speech, Lula has reaffirmed His commitment: “It is not a question of replacing our currencies, but we must work so that the multipolar order that we wish is reflected in the international financial system”. This ambition is shared by Russia, which announced in December that the British block countries will use digital currencies for certain investments. However, no common currency is on the agenda, because each country favors monetary cooperation without abandoning its financial sovereignty.
By taking over the presidency of the BRICS Alliance, Brazil intends to advance these initiatives at the July 2025 summit, which could be a turning point in the overhaul of world transactions. But, this policy is not without risk. Thus, the United States monitors these developments closely, and Donald Trump is particularly offensive in the face of this initiative.
Trump counterattacks with the threat of customs tariffs
President Donald Trump does not hide his hostility towards the Brics, whom he accuses of wanting to weaken the dollar. He explicitly threatened to impose 150 % taxes on imports from countries he would deem responsible for this attempt to question the American financial system. “Any BRICS state which mentions the destruction of the dollar will be sanctioned,” he said, which leaves doubt about the extent of his reprisals.
However, the position of the BRICS remains nuanced. But, unlike the American accusations, the block does not seek to destroy the dollar, but to have payment alternatives to reduce its dependence. Could the United States still apply these sanctions? However, the answer is based on the interpretation of the decisions of the BRICS: if the payments in local currencies or via Brics Pay intensify, will this be enough to trigger Washington's anger?
One of the key issues will be to see if Brazil will be able to protect itself from these measures by emphasizing the fact that it does not campaign for a single currency of the BRICS. A gray area remains, and the next few months will be decisive to find out if the American threat will remain rhetorical or if it will result in concrete actions.
The duel between the BRICS and the United States illustrates a profound change in the world economy. If 50 countries really adopt the BRICS payment system, this would mark a significant reduction in the domination of the dollar and a realignment of economic forces. The fear of the United States is therefore justified: a massive adoption of an alternative system would weaken their monetary control lever. The whole question is whether Brazil and its allies will be able to withstand American pressures without causing an open trade war. The BRICS summit in July 2025 will undoubtedly be the scene of a new episode of this confrontation, with the backdrop of a possible reconfiguration of the world economic order.
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