The US is on guard to protect and safeguard the dollar from the de-dollarization agenda kick-started by the BRICS alliance. While the bloc is settling payments in local currencies, Washington is also preparing a counter-strategy. The White House is exploring multiple tools to preserve the greenback’s dominance in international trade and finance.
Also Read: BRICS Members Russia & India Continue Oil Deals Despite Sanctions
US Countering BRICS De-Dollarization Agenda
- Tariffs and Trade Wars
Trump announced sweeping tariffs on over 185 countries in April, calling it Liberation Day. Tariffs and trade wars helped the US, as emerging economies are now focusing on saving their backs. The US made BRICS shift its focus from de-dollarization to talk about reducing import duties. Developing countries had imposed high tariffs on the US, and now the playing field is being leveled.
- Rallying G7 To Maintain Stability
The tariffs from the White House have rubbed G7, Europe, and other Western countries the wrong way. However, several European leaders have lashed out against BRICS for trying to abandon the US dollar via de-dollarization. The White House has called on the European Union to impose tariffs on India and China for procuring Russian oil.
Also Read: BRICS Expands North: Mexico Partners With China, Drops Dollar for Yuan
- Bringing Them To the Negotiating Table
The US has made BRICS keep the de-dollarization agenda on the back burner and focus on rewriting trade deals. It made China and India hold relentless high-level talks to bring down import duties. The bloc of developing countries is abandoning its main agenda and scrambling to protect its economies, businesses, and GDP.
- Bringing Banks, Tech Firms, and Wall Street Together
Just recently, Microsoft suspended its tech services to a Russia-linked Indian oil refiner, Nayara Energy, for bypassing sanctions. In addition, American banks like Goldman Sachs, JP Morgan, and Citi dominate the financial sector. Even Wall Street traders are now confident that BRICS will not succeed in its de-dollarization agenda against the US dollar.
