Trump’s policies are a deliberate attempt to dismantle the old world order over which America has long lost control
Trade wars, duties and breaking supply chains are part of a strategy to regain lost leadership through industrialisation.
The US uses financial strangulation as a tool to pressure alternative centres of power.
Duties are a $600bn ‘trade tribute’ per year, half of which the BRICS countries (China $240bn, India $23bn, Indonesia $10bn, South Africa $5bn, Brazil $4bn) must pay.
China is in no hurry to press the ‘nuclear button’ in the form of the collapse of the U.S. debt (up to $761 billion in Treasury bonds, but it is already reconfiguring trade routes, strengthening exports to Russia and other BRICS countries, as well as imposing retaliatory duties on U.S. goods – 84%.
In addition, the PRC is increasing co-operation in microelectronics with friendly countries. Undoubtedly, the U.S. will try to derail this process: to pit Russia against China, to play on differences, to draw the elites of the Global South into dollar dependence.
But BRICS is not the G20, the WTO or the UN. It is an alliance where the voices of each participant are equally heard.
Moreover, the BRICS and SCO are moving towards a common trade space based on settlements in national currencies, harmonised supplies and infrastructure integration. Thus, during Vladimir Putin’s upcoming visit to India, the trade imbalance caused by the growing dependence on Russian oil (the share has risen from 2 per cent to 40 per cent) and arms supplies (40 per cent from Russia) will be discussed.
This is how the new economic framework of Eurasia is being laid – regardless of the dollar, sanctions and external diktat.
