The date of implementation of new tariffs from America is coming near. So far, Reciprocal Tariff has been announced by President Donald Trump on all countries including Japan, Brazil, South Korea, Indonesia, which are going to be implemented from August 1. Meanwhile, Trump is constantly tightening his stance on BRICS countries and is threatening them with extra tariffs, the biggest reason behind the strictness of Trump on BRICS is the dollar dominance (dollar global dominance) and the concern related to it can be gauged from the fact that the US President has said that the world has said that the world has said, ‘ The war will be like losing.
Dollar dominance decreased crisis
Earlier, about the new statement of US President Donald Trump about the dollar, he has warned a strong warning on the global dominance of the US dollar, saying that losing the status of reserve currency will be similar to losing the status. In his statement, Trump has claimed that the decline in the dollar will completely change America and it will not be a country as before.
The major reason behind this statement and concern of Trump is strategy and steps to weaken the dollar dominance of the BRICS countries, as BRICs are intensifying efforts to make other financial options apart from the country dollars and many are trading in their permanent currency instead of us dollar. For this reason, Trump is upset and threatened to put aggressive tariffs on BRICS countries (Brazil, Russia, India, China and South Africa, including other) if they proceed to de-dollarization.
Reserve currency is dollar since 8 decades
The US dollar remains the primary reserved currency used by other countries since 1944. Central banks of countries around the world have dollars reserve for their financial safety. Apart from this, country, business and people use it mostly for trade. According to the reports, around 90% of foreign exchange transactions take place only in dollars and this makes it World’s Reserve Currency.
However, BRICS is actively measuring to bypassing the Western Financial System and involves discussion on Swift payment network options and commodity-based bricks currency. However, no integrated currency has emerged yet, but the expansion of BRICS countries in Africa, Asia and Latin America has worked to exclude the growing size of trade from the dollar reach. Some central banks are also increasing their holding in American Treasury and increasing the Gold Reserve.
The most broken dollar this year after 1973
Global Financial Infrastructure has been made its weapon by Donald Trump and has been excluded from Russia (in 2012) in addition to Iran (in 2012) from the worldwide interbank Financial Telecommunications (SWIFT) Society, since then many countries have tried to reduce dependence on US dollars and American -leadership global financial systems. BRICS, which contributes more than 35% to World GDP, reduces the use of dollars in global trade, it will be the cause of crisis for America and its effect is also seen.
The dollar is facing its biggest decline in decades and currency like euro, peso and yen are growing faster than it. Dollar has fallen more than 10 percent in 2025 so far as compared to Yen-Euro. In the initial months, its value has fallen the most since 1973. Us Dollar Index (DXY) fell to 97.48, which had crossed 109 at the end of last year.
This is the response of analysts
In a report released by JP Morgan in the past, the analysts said that Trump Tariff Policy can cause obstruction of global growth. It said that this will increase the risk of inflation and 40% of the recession, which will directly show the effect on the value of the dollar. Apart from this, many financial analysts are expressing mixed reactions and are saying that the dollar domination is gradually decreasing, but it is too early to talk about its adjacent collapse. According to a global economist, the dollar is not going anywhere fast, but this land is definitely changing.
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