Trump Claims Trade Deal with India Amidst Broader Asian Negotiations

Former President Donald Trump, before departing for a rally in Michigan to celebrate his first 100 days in office, told reporters, I think we have it. He was referring to an agreement on duties with India, adding, It’s going great. This announcement came shortly after Vice President J.D. Vance and Indian Prime Minister Narendra Modi declared they had made many progress on rates and were very close to a commercial agreement.

Treasury Secretary Scott Bessent also highlighted progress,noting that he could see the contours of an agreement with South Korea, while negotiations with Japan were proceeding. Bessent appreciated the efforts of Asian commercial partners, describing them as the moast available in terms of agreements.

BRICS Nations Seek Economic Cooperation to Counter US Trade Policies

While the U.S. pursues a policy of duties, the BRICS nations (Brazil, Russia, India, china, and others) are expanding their cooperation to counter what they perceive as aggressive U.S. initiatives. Despite differing national interests among the eleven countries in the bloc,U.S. policies impacting their export balances are driving them toward a common front.

The foreign ministers of the BRICS nations convened in Rio de Janeiro to broaden the scope of trade transactions using local currencies within the bloc. This initiative aims to reduce reliance on the U.S.dollar and foster greater economic independence.

De-dollarization Efforts within BRICS: A Gradual shift

Brazilian Chancellor Mauro Vieira clarified that the BRICS initiative is not intended to replace existing currencies or create new ones but rather to facilitate transactions at lower costs. He noted that bypassing the dollar is already a reality within the Association for the Integration of latin America (Aladi).

It is premature to speak of the transition of BRICS towards a single currency.Our efforts aim to create a platform for payments between the countries of the blockade.

Serghey Lavrov, Head of Russian Diplomacy

Lavrov emphasized that the foundations for a payment infrastructure were laid with the declaration of Kazan in 2024. The focus is on a more active use of national currencies. He added that the possibility of a common currency for BRICS could be revisited when the necessary financial and economic conditions arise.

Lavrov observed that with the acceleration of the fragmentation of the global economy, countries in the Global South and East are reducing their use of Western currencies to avoid the impact of Western penalties. According to the BRICS Chamber of Commerce and Industry, the volume of agreements in national currencies has surpassed that of agreements in U.S. dollars for the first time,a trend that began in 2022.