BRICS, which currently consists of ten nations, is reportedly attracting interest from over 30 additional countries seeking membership, according to Russian and Chinese sources.
Duncan Wrigley, Chief Economist for China at Pantheon Macroeconomics, suggests that the United States is unlikely to impose 100% tariffs on BRICS nations, as this could exacerbate tensions during an already strained period in US-China relations.
China, the world's second-largest economy, aims to position itself as an alternative global player, necessitating support from developing countries. It has already implemented a zero-tariff policy for the most economically vulnerable nations.
Despite efforts to dethrone the US dollar, experts assess that BRICS faces significant challenges, with attempts to create a unified BRICS currency proving unsuccessful. However, there is a growing trend of trade in local currencies, particularly between China and Russia, where the yuan and ruble are increasingly utilized.
Member countries have agreed to enhance trade in local currencies and support the establishment of independent cross-border payment infrastructures. Nonetheless, neither the Chinese yuan nor the Russian ruble poses a threat to the dollar's dominance in financial markets.
Experts highlight the absence of a concrete strategy from BRICS to supplant the US dollar's influence in the global economy. Moreover, many BRICS nations remain cautious about jeopardizing their trade relations with the United States.
Gustavo Medeiros, Head of Research at Ashmore Group, emphasizes that there is no reason to believe that members of the bloc would automatically face economic or geopolitical risks in the event of a trade war between the US and China.