A BRICS alternative financial system is rapidly emerging right now, and Russian President Vladimir Putin has declared the Western-dominated financial order as “becoming obsolete” during the BRICS annual summit on July 6. Such a BRICS alternative financial system poses a direct threat to the US dominated global economic systems in the form of de-dollarization BRICS plans, Putin sanctions countermeasures, and Trump tariffs and BRICS conflicts that are emerging.

Also Read: Trump’s Economic Nationalism Escalates, Pressures India and BRICS

BRICS Alternative System, De-dollarization, Tariffs & Currency Shift

Putin Sanctions Response Through BRICS Framework

Putin’s sanctions response has systematically built the BRICS alternative financial system through BRICS partnerships since February 2022, actually. The United States and European Union have imposed comprehensive sanctions targeting Russia’s financial, energy, and also defense sectors, creating economic pressure with inflation at nearly 10 percent.

Member countries like India and China have implemented the BRICS de-dollarization strategy, providing crucial alternatives to Western markets. Last year, an Indian company violated sanctions by sending hundreds of millions of dollars’ worth of advanced computer chips to Russia through Malaysia, even though this was against the rules.

Trump Tariffs & BRICS Escalation

It seems that Trump’s tariffs threats on BRICS represent significant escalation in the economic standoff that’s happening right now. Trump was clear about the fact that:

“Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff.”

Even more, he is very unhappy with Putin amid Russia’s relentless attacks on Ukraine. Trump’s tariffs warnings extend to potential sanctions on countries that allow Russia to use their territory for sanctions evasion, including China, India, Turkey, and the United Arab Emirates.

BRICS New Currency Development

The BRICS new currency initiative has gained momentum as the BRICS alternative financial system develops further. Member nations have successfully implemented de-dollarization BRICS policies, using local currencies for the vast majority of transactions between members.

Since 2024, discussions have intensified around developing the BRICS new currency in direct opposition to the dollar, along with plans for a “BRICS Bank.” The July summit saw participants affirm their commitment to creating a cross-border payment system.

Putin himself clearly mentioned his plans about creating an independent payment and monetary system within BRICS.

Also Read: BRICS Building Viable Alternative to the Western World Order

The BRICS grouping regime currently covers 35 percent of the world economy that includes a dozen of the partner countries, which offers Russia new markets via its Putin sanctions response policy. BRICS alternative financial system is on the rise with Moscow pursuing integrated alternatives to western-dominated financial body which could change the face of the finance scenario driven by Trump’s tariffs on BRICS in the current tensions at the time of writing.