Dollar dominance faces a historic reckoning as looming U.S. tariffs on BRICS nations risk accelerating de-dollarization and fueling a rapid pivot to rival financial systems.

US Tariff Threats Could Backfire as BRICS Strengthens Parallel Financial System

Mounting economic divergence between major global powers is accelerating the shift toward a multipolar trade system and eroding traditional dollar-centric influence. Economist Igbal Guliyev of MGIMO University warned on July 10 that a planned 10% tariff on BRICS nations—announced recently by U.S. President Donald Trump—could severely damage Washington’s long-term economic leadership. Speaking to Russian news agency Tass, Guliyev described BRICS as already laying the groundwork for structural alternatives:

The BRICS countries are rapidly forming a parallel architecture in the financial, technological and institutional areas, thereby challenging the existing status quo and the dominance of the dollar.

He called the tariff plan a sign of broader geopolitical recalibration, not simply a trade dispute.

Rather than isolating BRICS, Guliyev believes the U.S. proposal will likely catalyze a coordinated and future-oriented counterstrategy. He stated: “The reaction of the BRICS countries will probably be not only tit-for-tat, but also strategically thought out – from accelerating de-dollarization to creating a new system of international settlements. This may mark the beginning of the decline of American economic dominance and the emergence of a truly multipolar trading system. The world is entering a period of turbulence, where non-economic factors will increasingly determine the economic future.”

According to him, these shifts are already underway, with China publicly denouncing the proposed tariffs as economic coercion and BRICS members stepping up efforts to bypass Western-controlled systems like SWIFT.

At a separate press conference, Russian Deputy Foreign Minister Sergey Ryabkov pushed back against the idea that BRICS has anti-U.S. intentions. “Nothing on the BRICS agenda contains an anti-American component,” Ryabkov said, adding that economic tensions should be addressed through “normal, calm dialogue” rather than unilateral threats. He urged Washington to engage diplomatically instead of using coercive trade policies.

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