About the author: Maria Vassalou is the head of the Pictet Research Institute, part of the Geneva-based bank and asset manager Pictet.
President Donald Trump announced last week that not only would he be placing a 50% tariff on Brazil, but he would also impose an additional 10% tariff on its fellow Brics members in an effort to counter the group’s “anti-American policy.” The coalition—led by Brazil, Russia, India, China and South Africa—had just days prior renewed their pledges of solidarity and cooperation at its annual summit in Rio de Janeiro.
The group has long been dismissed as a collection of developing countries with little in common other than historical border disputes and troubled economies. But in recent years, it has expanded beyond its original membership to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates and has extended invitations to Saudi Arabia. Turkey, Mexico, and others have applied for membership.
Some of these countries lack punch or significance on their own. But they have all been carefully chosen to add to the coalition’s collective strengths and levers of global influence. The Trump administration’s tariffs may be an overreaction to this—but there are signs the group is methodically threatening the economic and geopolitical hegemony of the U.S.
Brics is for China what the G-7 and the European Union are for the U.S. The G-7 and the EU, however, want for resources Brics is rich in. Brics dominates global production in magnesium, aluminum, and antimony, all of which are needed for ammunition production.
It has more rare earths, industrial metals, and grains than the G-7, and produces more oil. The group also owns almost double the precious metals reserves of the G-7 and EU combined. Overall, Brics has significant advantages in the artificial intelligence and clean energy revolution.
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