An emergency BRICS summit, urgently convened by Brazilian President Luiz Inácio Lula da Silva, marked a turning point for the bloc as it moved from broad declarations to a coordinated political and economic strategy. The online meeting included Vladimir Putin, Xi Jinping, Cyril Ramaphosa, and India’s foreign minister.
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BRICS states
Summit urgency rooted in US tariff pressures
The initiative to convene the summit came from Brazil, not China or Russia, highlighting the urgency of Washington’s recent tariff measures. The US imposed tariffs on Brazil for political rather than trade reasons, citing the prosecution of ex-president Jair Bolsonaro, accused of plotting a coup. For Lula, this was clear evidence that under the guise of trade fairness, Washington was pressuring governments and undermining sovereign politics.
President Putin’s remarks were delivered in a closed format, with no media access.
Xi Jinping’s three proposals to defend the Global South
Chinese President Xi Jinping advanced three proposals, according to China’s Foreign Ministry:
- Defend multilateralism and uphold international fairness and justice to strengthen the voice of the Global South.
- Preserve the multilateral trading system centered on the WTO and resist protectionism, while enabling equal participation in global cooperation.
- Maintain BRICS unity and cooperation: “The blacksmith must be strong.” Xi urged the bloc to leverage its strengths, deepen practical cooperation, and achieve results in trade, finance, science, and technology.
Xi emphasized responsibility and mutual assistance, signaling a push toward decisive steps in financial integration.
BRICS accelerates plans for a unified financial system
Lula has been championing the idea of a BRICS currency. In an interview with Band News, he declared: “We cannot continue to depend on the dollar, which is the currency of one country, adopted as a global standard.” He advocated transactions in local currencies or the creation of a unified BRICS currency for internal trade. Leaders announced that up to 90% of intra-BRICS trade is already settled in national currencies.
Two currency models are under discussion: a weighted basket of currencies (40% China, 25% India), or a hybrid with 40% gold and 60% BRICS currencies. Since 2019, the BRICS Business Council has studied a “special cryptocurrency” to facilitate trade. In parallel, the BRICS Bridge payment system is linking central banks and thousands of institutions via blockchain technology. India, historically reluctant to replace the dollar, may shift under US political pressure, after Washington explicitly demanded New Delhi leave BRICS.
Global financial reset and US response
If BRICS accelerates the move to independent financial mechanisms, it could reset global banking and capital markets—an existential threat for the United States. Notably, President Donald Trump has threatened 100% import tariffs on all BRICS nations if they attempt to replace the dollar.
Currently, Brazil and India face the steepest tariffs at 50%. China and South Africa face 30%, Egypt, Ethiopia, UAE, and Saudi Arabia 10%. Among the extended BRICS partners: Thailand is hit with 36%, Kazakhstan 25%, Malaysia 24%, Vietnam 20%, Nigeria 14%, and Belarus, Bolivia, Cuba, Uganda, and Uzbekistan each 10%. Russia remains exempt, as sanctions and its low trade volume with the US render tariffs unnecessary.
