Brazil doubles down on ditching the dollar: Will Trump’s 100% tariffs kick in?

The global chess game between the so-called "Global South" and the West just got a little more interesting, and Brazil is making its next move loud and clear.

As the BRICS president for 2025, the South American giant is digging in its heels on its mission to break free from the US dollar’s dominance — via BRICS Pay — a digital settlements platform.

This, despite the whopping 100 per cent tariff threat issued by US President Donald Trump looming overhead.

Brazilian President Lula da Silva, however, has reiterated that BRICS will continue to push an alternative payment systems.

BRICS vs. the dollar: A battle brewing

The BRICS economic alliance follows a rotating chairmanship model, passing leadership from one nation to the next each year.

In 2025, Brazil steps into the chairperson's role, ready to steer the bloc’s course. But if anyone thought Brazil was going to tread lightly in the high-stakes game of de-dollarisation, think again.

This week, it's been reported that more than 50 countries are ready to accept the BRICS Payment System, effectively ditching the SWIFT payment system.

And despite fierce pushback from Washington, Brazil’s President Luiz Inacio Lula Da Silva is keeping his foot on the gas.

Speaking about the alliance’s operations, Lula reaffirmed that BRICS will not back down from its mission to move beyond the dollar — even if it means facing the wrath of a tariff-happy Donald Trump.

This will be pursued during a BRICS "Sherpas" meeting to take the ideas forward. The upcoming BRICS Summit in July, under Brazil's chairmanship, could unleash major change in the way the bloc members settle cross-border transactions.

Though it's been discussed, no common BRICS currency is coming anytime soon.

Lula was reiterating what another member of the bloc, Russian President Vladimir Putin, has announced in December that the BRICS countries are planning to adopt digital currencies for investment purposes.

"It's not about replacing our currencies," said Lula in October, "but we need to work so that the multipolar order we aim for is reflected in the international financial system."

Trump’s tariff threat

It’s no secret that Trump and BRICS aren’t exactly best friends.

The US president has been vocal about his disdain for any country that dares to challenge the greenback. And in true Trump fashion, he made his stance crystal clear with this fiery declaration:

“Any BRICS state that even mentions the destruction of the dollar will be charged a 150 per cent tariff.”

That’s a tariff tsunami no country wants to get caught in.

Verbal firestorm

Yet, despite the verbal firestorm, BRICS isn’t backing down.

The bloc has already rejected a BRICS common currency but remains steadfast in finding alternative payment methods for trade between member nations.

Whether or not Brazil’s independent approach shields it from Trump’s wrath is a question that will dominate geopolitical discussions in the coming months.

Will Brazil’s gamble pay off?

As things heat up on the global economic stage, the million-dollar (or should we say billion-dollar?) question is: Will Brazil’s determination to ditch the dollar trigger Trump’s infamous tariffs?

Technically, the bloc has never outright declared war on the greenback, so does that leave room for negotiation? Or will the mere pursuit of alternative trade solutions be enough to unleash the tariff hammer?

One thing’s for sure — 2025 is shaping up to be a wild year for BRICS, the US, and the world economy.

The BRICS Summit in July hosted by Brazil will be a closely-watched event. This showdown is far from over.