A growing BRICS and a changing world order

Leaders and representatives from the BRICS alliance gathered earlier this week in Rio de Janeiro for the group’s 17th annual summit. The summit comes amid rising geopolitical tensions, including the recent Israeli and U.S. strikes on Iran, which has been a BRICS member since 2024, along with the genocide in the Gaza Strip, and the war in Ukraine.

The return of Trump to the White House and his renewed tariff threats have also raised concerns for the group. The two-day talks were hosted by Brazilian President Luiz Inacio Lula da Silva, with trade and investment, financial cooperation, AI and technology, global health and climate action on the agenda.

BRICS was originally formed in 2009 by Brazil, Russia, India and China, with South Africa joining the following year. It has grown to 11 members, including Saudi Arabia, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia, the latest member to join the bloc. An additional 10 countries, among them Vietnam, Nigeria and Malaysia, have joined as official “partner countries,” a new category introduced at the 16th BRICS summit in Russia.

The bloc, which sees itself as a voice for the Global South, accounts for around 44% of global GDP and more than 56% of the world’s population. It advocates for a multipolar global order and expansionism and seeks to counter Western and U.S. influence on the global front.

The group seeks better cooperation among Global South countries by creating alternative financial systems, reducing dollar dependency and greater representation in global institutions. Brazil is said to focus on several key agenda items, including global health cooperation, trade, investment and finance, and climate change. It is also emphasizing artificial intelligence, governance, multilateral peace and security architecture, and institutional development.​​​​​​​

Trump has threatened additional tariffs of 10% on any country that supports the “anti-American” policies of the BRICS group. Trump did not explicitly specify what constitutes “anti-American” policies in this instance, but he has previously warned the group not to create a new BRICS currency or “back any other currency to replace the mighty U.S. dollar.”

BRICS is widely seen as a challenge to the unipolar global power dynamic, in which the U.S. is regarded as the lead superpower. Instead, BRICS members have pushed a multipolar power setting, in which various countries lead global cooperation efforts. Some observers argue that the U.S. position as the standout superpower has come to an end and that the transition into a multipolar power is already underway.

Trump has previously threatened BRICS with tariffs. In November, after winning the presidential election, he threatened a 100% tariff on BRICS nations should they “move away” from the U.S. dollar.

Regardless of Trump’s threats, the BRICS is expanding and gaining in importance. BRICS membership offers numerous benefits, primarily focused on economic cooperation and increased global influence for its member nations. Key advantages include enhanced trade and investment opportunities, access to new markets, and a stronger collective voice in international affairs. Additionally, BRICS provides a platform for developing nations to challenge the existing global order and promote a more multipolar world.

In addition, membership can open doors to larger, faster-growing markets within the BRICS nations, fostering economic diversification and growth. BRICS provides an alternative to traditional trading partners, reducing dependence on established markets and economies. BRICS has established the New Development Bank (NDB) to fund infrastructure and development projects, offering an alternative to traditional lending institutions. The bloc is exploring the possibility of a common currency, which could reduce dependence on the U.S. dollar and offer greater financial autonomy. BRICS aims to create alternative financial and economic mechanisms, potentially challenging the dominance of Western-led institutions like the World Bank and IMF.

The U.S. and Trump have clearly started to worry about the growth and impact of BRICS. On the other hand, there is still no BRICS governance structure and organized coordination between the countries, and they would benefit from a permanent operating model. The world is changing though, and the U.S. is slowly but steadily losing market share and global use of the U.S. dollar. Countries are seeking alternatives to the U.S., they are forming competing blocs and trying to become more independent from the U.S. The transition is rapid, and a new world order is taking shape.