Prime Minister Narendra Modi was summoned by Russian President Vladimir Putin and his Brazilian counterpart Lula da Silva. Soon, the Indian prime minister will travel to China for the SCO conference. Trump’s assaults on the region, tariffs, and cryptocurrency wager against the purported Brics currency have all contributed to the surge in Brics activity.
The Global South has seen a surge in diplomatic activity during the last week. China, Brazil, India, and even the ‘expelled’ member of the Global North, Russia, have been actively involved in talks. The harsh trade measures and outspoken assaults on the EU by US President Donald Trump are largely responsible for this momentum. With the addition of five additional countries, this gathering of the original Brics members seems to be strengthening the alliance, which analysts say is ready to oppose Trump’s daily tariff offensives and threaten the US dollar’s hegemony. There is probably going to be a significant Brics backlash against the Trump-led US.
The rise in diplomatic ties between the Brics and Trump’s frequent accusations of the bloc being “anti-American” and his imposing of high tariffs on China, India, Russia, and Brazil coincide with this development.
The economic difficulties are exacerbated by Trump’s changing position on cryptocurrencies. Formerly disdainful, Trump has called Bitcoin a “scam” and is now actively working to establish the US as the global centre of cryptocurrency. Many see this as an attempt to take advantage of the profitable digital asset market and a reaction to anticipated threats from a prospective Brics currency that would challenge the petrodollar’s hegemony.
There is no denying the indications that the Brics are preparing to challenge Trump. Approximately six significant events in the last week alone have signalled tangible progress.
After a “very good and detailed conversation” with Russian President Vladimir Putin on Friday, Prime Minister Narendra Modi reiterated India’s commitment to strengthening the two nations’ strategic cooperation. Ajit Doval, India’s national security adviser, had seen Putin in Moscow just the day before.
Putin is expected to travel to New Delhi later this year, according to reports.
While Brazilian President Lula da Silva was speaking to Prime Minister Modi on Thursday, the bear embrace between Russia and India took place.
Later this month, Modi will make his first trip to China in seven years to attend the Shanghai Cooperation Organisation (SCO) meeting. With its mouthpiece, The Global Times, clearly moderating its tone towards India, Beijing’s tone has grown more amiable.
WHAT THE BRICS HAVE TO SAY ABOUT TRUMP’S TARIFFS
Citing India’s continuous imports of Russian oil, which make up 36% of its oil imports, Trump doubled tariffs on Indian goods to 50%, escalating trade tensions. Trump’s claims of political persecution of former Brazilian President Jair Bolsonaro led to a comparable 50% tariff rise for Brazil.
Trump has used direct and offensive language. He referred to Russia and India as “dead economies” and charged that New Delhi was making money off of the resale of Russian oil. He also threatened to impose an extra 10% tax on Bric countries that oppose US interests.
The levies have been deemed “unjustified” by India.
India’s “steady and time-tested” relationships with Russia, according to Foreign Ministry spokesperson Randhir Jaiswal, should not be seen through a third-country lens by the US.
Lula of Brazil, meanwhile, told news agency Reuters that “I will not call Trump to negotiate anything I’m not going to humiliate myself” in response to Trump’s offer of direct trade. Rather, Lula pledged to mobilise united answers and support through Brazil’s Brics leadership. He stated that he planned to discuss the effects of the tariffs with Xi Jinping and PM Modi.
IS THE TRUMP CRYPTOCURRENCY AND THE BRICS CURRENCY LINKED?
Trump’s reversal from calling Bitcoin a “scam” to establishing the US as the world’s cryptocurrency capital suggests that the action may also be intended to lessen the negative effects of the prospective Brics currency.
According to The Guardian, Tump issued an executive order on Thursday permitting the inclusion of cryptocurrencies and other assets like as real estate and private equity in 401(k) retirement plans.
Trump has made significant progress in the field of cryptocurrency since he returned to the White House.
He issued an Executive Order in January to create a Strategic Bitcoin Reserve and advance US leadership in digital assets. He named proponents of cryptocurrency like David Sacks as the “crypto czar” and Paul Atkins as the chair of the Securities and Exchange Commission. He has even supported World Liberty Financial, his family’s cryptocurrency business, which has worked with Pakistan.
This change is viewed as a calculated response to the possible danger posed by the Brics countries, who are investigating alternatives to the dollar’s hegemony through programs like Brics Pay and talks of a currency backed by commodities. However, India has resisted plans to adopt a single Brics currency.
Trump wants to keep America’s financial advantage in a world economy that is changing quickly, thus he is advocating for a US-controlled cryptocurrency ecosystem, including the Strategic Bitcoin Reserve.
This strategy might have a big effect on the dollar’s status as the primary reserve currency of the world, as American entrepreneur Sandy Carter pointed out in Forbes. The dollar’s hegemony is in jeopardy as more nations experiment with digital currencies and decentralised banking, but the US may maintain its lead and adjust to this changing environment by embracing digital assets.
MODI AND LULA STRATEGISE AGAINST US TRADE PRESSURE
With around 46% of the world’s population and a 35.6% GDP contribution, the Brics bloc is banding together to oppose Trump’s economic and trade policies.
The goal of Lula’s one-hour call with PM Modi was to increase bilateral commerce between India and Brazil from $12 billion in 2024 to $20 billion by 2030, with an emphasis on strengthening trade, defence, energy, and technology links. Early in 2026, Lula also confirmed a state visit to India. A “people-centric partnership” between the countries of the Global South was advocated by PM Modi in a post on X. It is believed that his campaign for a wider alignment was a direct reaction to Trump’s policies and tariffs.
“So basically, the world’s largest democracy and South America’s biggest player are swapping notes on how to play hardball with the US,” said investor and influencer Mario Nawfal, summarising the situation.
“Next stop? Beijing. Modi’s first trip to China in seven years, landing this August, as US–India vibes hit their frostiest point in a decade,” added Nawfal.
During his recent Moscow visit, NSA Doval described previous India-Russia summits as “watershed moments”. Then came the reports on Putin’s planned visit to New Delhi later this year. Modi’s attendance at the SCO summit in Tianjin signals India’s and China’s intent to better ties despite persisting border tensions.
Brics countries are demonstrating their solidarity against the U.S. President’s aggressive trade policies and attempts to preserve dollar dominance by strengthening their diplomatic and economic ties in the wake of Trump’s tariff conflicts. In addition to upending the current quo, the developing alliance hastens the transition to a more multipolar world where the Global South is vying for its just share. A storm of opposition is being fuelled by the Brics coalition, which is becoming stronger as a result of Trump’s tariffs. Trump is probably going to have a Brics reaction.