The anxiety and frustration expressed by President Elect Donald Trump’s in his recent post on X about the de-dollarization is actually highlight an important truth: his own comments serve as an implicit acknowledgment that the de-dollarization is inevitable.
Trump post on X is actually an open admission of this reality that the “exorbitant privilege” of the dollar’s dominance reached at its hilarious end.
Trump post showed the proximity of the dominance of the U.S. dollar on the global stage has gradually come to the crossroad. This shift has been driven by various geopolitical and economic factors that seem to be irreversible, and to prevent the “demise of the dollar” is unrealistic. The increasing pace of the de-dollarization trends highly reflects the broader shifts in global power dynamics and financial systems that the U.S. has no longer control on it.
Trump’s Frustration: A Reflection of Global Shifts
Trump’s X post and is an open intimidation, in which he warned that the United States (U.S.), would take extreme measures, like imposing massive tariffs on BRICS nations or even closing American markets to those who accept the BRICS-backed currency. BRICS plus expansion, the group now accounts approximately 30 percent of global GDP, nearly half of the world’s population.
Donald Trump gesture is actually underscoring his extreme desperation towards the increasing dollar depreciation. However, such tactics of intimidations would most likely backfire. Countries moving toward BRICS and its new currency proposal will not be intimidated by these threats’ tactics. Instead, they see them as the final gasps of a system that has long served the interests of the US under the so-called Bretton Woods Agreement in 1944.
Trump’s rhetoric about shutting the doors of the US markets and imposing tariffs on nations seeking economic independence is unlikely to halt the de-dollarization process but could be a catalyst. The BRICS plus nations—Brazil, Russia, India, China, and South Africa—are pushing forward with a vision for a multipolar world order, where the dominance of the US dollar is no longer plays its monopoly of international trade but a multicurrency option for win-win cooperation.
The End of US Dollar Hegemony
The de-dollarization is not only the need of this hour, but it has been also written on the wall the end of the long-standing hegemony of the US dollar. For decades, the dollar has manipulated the status of the world’s primary reserve currency, largely because of the US’s role in global trade, the stability of its financial system, and its dominance in international markets.
However, the dollar cartel has come to the burst now apparently with the significant downfall. As more and more developing countries particularly those in the Global South, have been shifting their dollar dependency to the other currencies. They have reduced their reliance on dollar for trade and debt financing, often facing crippling debt burdens and vulnerability.
More countries in the BRICS bloc are now have consensus to launch the BRICS currency, as in 2023 Brazil President Luiz Inácio Lula da Silva, proposed a common currency in South America to reduce reliance on dollar. Similarly in the recent 16th BRICS Summit in Kazan, Russian President Vladimir Putin emphasis the possibilities of wider use of national currencies and enhancing cooperation with the central Banks.
The rise of alternatives currencies against dollar, most notably through the BRICS Currency and the increasing use of local currencies make US alarm.
Trump’s Tariffs: A Threat to US Economic Stability
While Trump pledged to make US the world crypto capital and on the other hand his fear from BRICS nations currency is something contradictory to his Crypto utopian model.
Trump’s recent statements regarding imposing a 100% tariff on BRICS countries’ commodities is an open challenge to those economies who have a substantial share in the leading the global economy.
It has been widely witnessed that those countries to whom Donald Trump have been threatening are no longer economically fragile nations as there were in past—but now they self-sufficient, far outstripping the United States U.S., in many sectors.
The US response, particularly through tariffs, is an attempt to protect its own crumbling economy. But imposing tariffs on BRICS nations risks significant backlash. Countries like China, India, and Brazil, which are central to the BRICS initiative, are already exploring ways to bypass the dollar in their international transactions, often by using their own currencies or bilateral trade agreements. If Trump pushes forward with these tariffs, the impact could be devastating to the US economy, leading to inflation, rising unemployment, and further economic instability.
The Global South Embraces De-Dollarization
BRICS and other emerging economies are positioning themselves as the future of the global economic order. The trend toward de-dollarization is not just about rejecting the US dollar—it’s about creating a more balanced global financial system that offers developing nations greater self-sufficiency over their economies. These countries have long been under the economic sway of the US and the International Monetary Fund (IMF), with limited control over their own monetary policies. The rise of alternatives currencies is actually giving their economies more confidence to flourish and grow.
This shift in the fleeting trend is a fundamental change that how the global trade and the financial self-reliance will work in the coming decades. The US’s attempt to intimidate BRICS and other nations into submission is unlikely to succeed. Instead, it could provoke a deeper commitment to creating a more diversified and impartial global financial system.
Trump’s Missteps: A Sign of Bigger Challenges Ahead
Trump statement with rage and frustration may not be enough to stem the tide of de-dollarization and the growing multipolarity in global arena. The BRICS nations, and the international community, are increasingly looking forward for an alternative to the dollar in the new financial order.
Claudia Sheinbaum the Mexico’s President reacted to Trump’s tariff threats by warning that such actions could lead to higher inflation and elevate the unemployment in the US. The response of Mexico President has come in the limelight and acknowledged by many who recognize that Trump’s protectionist stance could backfire and weak the US economy.
Trump’s post on de-dollarization serves as a stark reminder that the days of the US dollar’s unchallenged dominance are gone. The world has been moving toward a more multipolar, multi-currency global order, and no amount of rhetoric or threats from the US will stop this shift. Far from protecting the US economy, Trump’s statements may only hasten its decline in the face of rising global competition and the inevitable de-dollarization of the world economy.
The demise of the dollar is not just a prospect; it’s now blatant reality. The only question now is how quickly the world will transition to a new economic era, and how much the US will suffer in the process while making a collision or compromise.
