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President Trump's Tariff Policies Cause Market Turmoil

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On April 4, 2025, President Donald Trump’s aggressive tariff policies sent shockwaves through global financial markets, triggering widespread turmoil and stoking fears of an economic downturn. The administration’s decision to impose sweeping tariffs—ranging from a 10% baseline on all imports to targeted rates as high as 50% on key trading partners like China, Canada, and Mexico—marked a dramatic escalation in Trump’s long-standing pledge to reshape U.S. trade. While the president touts these measures as a means to boost domestic manufacturing and reduce the $1.2 trillion goods trade deficit, the immediate fallout has been a steep market sell-off, with the S&P 500 plunging nearly 5% in a single day, its worst performance since June 2020. The tariffs, unveiled in a White House address, aim to retaliate against perceived trade imbalances and practices like currency manipulation. Trump argues they will force companies to relocate production to the U.S., creating jobs and strengthenin...
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BRICS+ currency pilot launch status – are member states really on board?

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The BRICS+ bloc, comprising Brazil, Russia, India, China, South Africa, and recent additions like Iran, Saudi Arabia, and the UAE, has been exploring alternatives to the U.S. dollar through initiatives like the BRICS Pay system and digital currencies. However, member states' enthusiasm and commitment to these projects vary, influenced by geopolitical considerations and economic priorities.

BRICS Pay and Digital Currency Initiatives


BRICS Pay aims to facilitate cross-border transactions among member countries using local currencies, bypassing the U.S. dollar. Russia has proposed integrating blockchain technology to enhance the system's efficiency and security. Additionally, Russia is advancing a gold-backed digital asset pilot to explore advanced payment solutions within the bloc. 

China and India are also piloting Central Bank Digital Currencies (CBDCs), with China focusing on integrating its digital yuan into global trade and India advocating for a decentralized model that respects economic multipolarity. 

Diverse Member State Perspectives

Despite these initiatives, enthusiasm among BRICS+ members is not uniform. China and India have shown interest in reducing reliance on the U.S. dollar, but their approaches differ. China emphasizes integrating its national currency into global processes, while India supports a decentralized model that considers diverse economic interests. 

Russia's proposal for a common BRICS digital currency has faced skepticism. The Bank of Russia acknowledges the challenges in coordinating such a project, citing the need for consensus among multiple parties. 


While BRICS+ countries are actively exploring alternatives to the U.S. dollar, internal differences and geopolitical considerations pose significant challenges to the realization of a unified currency system. The success of these initiatives will depend on the ability of member states to reconcile their diverse economic strategies and achieve consensus on implementation.


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