Trump's tariff pressure strengthens BRICS economic cooperation incentives

September 12, 2026 at 12:44 PM2 min

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US President Donald Trump's aggressive tariff policies are giving BRICS countries a common reason to cooperate economically, even as the bloc remains divided on geopolitical issues. The bloc's 11 members account for nearly half the world's population and about 40 percent of global GDP. Trump's pressure may be strengthening the very incentives that made BRICS attractive in the first place.

Key Facts

BRICS has 11 members: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.
The bloc accounts for nearly half the world's population and about 40 percent of global GDP.
The US dollar accounted for 57.1 percent of global foreign-exchange reserves in the first quarter of 2026, according to the IMF.
The Chinese renminbi accounted for just 2 percent of global foreign-exchange reserves in the same period.
In May, Iranian and Emirati representatives clashed during a foreign ministers' meeting in New Delhi.

Trump's Tariff Pressure

Last year, Trump threatened an additional 10 percent tariff on any country aligning itself with what he called the bloc's 'anti-American policies'. His administration has continued to wield tariffs aggressively against trading partners, including BRICS members such as Brazil, India and China. The message appears straightforward: countries that challenge US economic power should expect to pay a price. But coercion has consequences, and as BRICS leaders meet in New Delhi today, Trump may be strengthening the very incentives that made the bloc attractive in the first place.

Internal Divisions

The bloc's 11 members have enormous political and economic differences and do not share a common ideology, security policy or even geopolitical orientation. Iran, Saudi Arabia and the UAE find themselves on opposite sides of a growing regional conflict. India and China have had a heated border dispute that led to deadly skirmishes in 2020-2021; only in the past two years have their relations gradually stabilised. So Trump is not producing a united geopolitical front against Washington.

Dollar Dominance

BRICS's efforts to diminish dependence on the US financial system do not mean the dollar is about to lose its position as a global reserve currency. The dollar remains overwhelmingly dominant, accounting for 57.1 percent of global foreign-exchange reserves in the first quarter of 2026, according to the IMF. The Chinese renminbi accounted for just 2 percent. For countries outside the Western core, dependence on US-centred economic infrastructure carries risks, including exposure to sanctions and restricted access to US markets.