Tariffs: A Strategic Counter to BRICS' Currency Aspirations

WELLINGTON, New Zealand - July 8, 2025 - PRLog -- As the BRICS nations (Brazil, Russia, India, China, and South Africa) explore the establishment of a new world reserve currency to challenge the U.S. dollar's dominance, it appears that the United States is deploying strategies to safeguard its economic and geopolitical position. Among these measures, tariffs have emerged as one approach to protect U.S. interests.

Tariffs serve as an economic lever by imposing taxes on imported goods, increasing their cost and making domestic alternatives more appealing. By targeting imports from BRICS nations, the U.S. hopes to reduce trade dependency on these countries.

While tariffs offer a direct and immediate way to exert economic pressure, their effectiveness is limited without complementary strategies. The U.S. must carefully balance the use of tariffs to avoid unintended consequences, such as retaliatory measures, disruptions to supply chains, and increased costs for consumers.

Ultimately, the U.S.'s efforts to protect the dollar's status as the world's reserve currency rely on a multifaceted approach that combines economic policies, strategic alliances, and global diplomacy. Tariffs are a tool in this arsenal, but they are most effective when used as part of a broader plan.

The U.S. dollar has long been the world's dominant reserve currency, a position that grants the United States significant economic and geopolitical advantages. However, losing this status could have profound consequences for the U.S. economy and society.  Moreover, it will definitively have a spill over impact on all western nations that are reliant on the U.S. both economically and militarily.

The risks of a potential conflict between BRICS nations and the western democratic nations are multifaceted.  The conflict will likely include both economic and military catalysts.

While these risks highlight the potential consequences of such a conflict, it's important to note that every nation would benefit from the prudence found in prioritising diplomacy and economic strategies to resolve disputes and avoid open warfare.