In recent weeks, tensions have been growing between the United States and some BRICS members, driven by President-elect Donald Trump and his tariff policies. Dubbed the “tariff man,” Trump continues to pressure emerging economies, threatening to impose 100 percent tariffs if they decide to introduce a new currency or replace the U.S. dollar with another currency.
Among the nations concerned, India, a founding member of BRICS, plays a central and powerful role in the intergovernmental organization that also includes China and Russia, among others. U.S.-India trade relations have been a major concern for Trump, who called New Delhi “the great abuser” at a campaign event in September.
Despite trade tensions caused by the imposition of steel and aluminum tariffs during his first term, Trump maintains warm relations with Indian Prime Minister Narendra Modi. This personal connection could work in India’s favor in the upcoming negotiations under Trump’s second term.
As India differentiates itself from other BRICS members by adopting a less “anti-American” stance, it could have some room to maneuver to counter de-dollarization discussions within the group. The prospect of creating a new currency or transitioning to another currency could allow member countries to reduce their dependence on the US dollar.
Observers highlight the importance of the Trump-Modi relationship, which could play a crucial role in balancing the power within the BRICS. While other member countries are adopting more critical stances toward the United States, India maintains a more conciliatory stance, providing a counterweight to external pressures.
Despite trade disputes and tariff threats, India is trying to maintain a pragmatic relationship with the United States, emphasizing more transactional discussions in a complex geopolitical context. While the incoming Trump administration may offer some relief from the Biden years, India will need to remain vigilant against potential upheavals in US trade policy.
In conclusion, India finds itself at a crossroads between a pragmatic relationship with the US and its position within the BRICS, providing a delicate balance between national interests and international constraints. Indian diplomacy will need to deftly navigate this complex landscape to defend its interests while preserving stable relations with its international partners.