The BRICS group of countries is increasingly being considered as an alternative for global diplomacy and cooperation amidst increasing tariff and protectionist policies from the United States. A number of developing countries view BRICS as a platform to strengthen trade, investment, and financial cooperation without over-reliance on a Western-dominated system.

US tariff pressure is pushing many countries to seek a more balanced economic and political path. Through BRICS, member countries are seeking to expand the use of local currencies, strengthen supply chains, and enhance solidarity within the Global South. This situation makes BRICS' role increasingly strategic in shaping the future direction of global diplomacy and the global economy.

Impact on the US Economy

US exports could decline as high tariffs encourage other countries to seek alternative trade routes through BRICS.

Domestic inflationary pressures may arise, as tariffs make imported goods more expensive.

US economic growth could slow, particularly in the manufacturing and export sectors.

Impact on the Global Economy

Global trade is becoming more fragmented. BRICS member countries can strengthen internal trade networks and reduce dependence on the West.

Investment in developing countries is increasing as they seek alternative markets outside the US and Europe.

Market volatility is increasing, particularly in the commodities and energy sectors, due to geopolitical tensions and persistently high tariffs.

Effects on the US Dollar

The US dollar tends to strengthen temporarily, as it remains a safe haven, but pressures from trade and BRICS diversification could weaken its long-term value.

Global investors may begin to shift some assets from the dollar to BRICS currencies or gold, thus reducing the dollar's total dominance.

Source: Newsmaker.id