Senior diplomats from BRICS countries convened in Rio de Janeiro on Monday, April 28, 2025, to present a united front against the sweeping trade tariffs imposed by US President Donald Trump. The two-day meeting, hosted by Brazilian Foreign Minister Mauro Vieira, takes place at a pivotal moment for the global economy, following the International Monetary Fund’s (IMF) decision to reduce growth forecasts due to the disruptive impact of US tariffs. The gathering is a precursor to the BRICS leaders’ summit scheduled for July, and aims to reaffirm the bloc’s commitment to multilateral trade and global economic stability.
Trump’s Tariffs Spark Global Concern
President Trump’s return to the White House in January 2025 marked the escalation of protectionist trade policies. The US administration has imposed a blanket 10% tariff on dozens of countries, with China facing levies as high as 145% on many products. In retaliation, Beijing has implemented duties of 125% on US goods, intensifying a tit-for-tat trade war between the world’s two largest economies.
According to the IMF, these tariffs have contributed to a significant downgrade in global economic growth projections. The Fund now expects the world economy to grow by just 2.8% in 2025, a sharp reduction from earlier forecasts, and warns of further losses if the current trajectory of escalating tariffs continues. “Global financial stability risks have risen markedly, propelled by stricter global financial conditions and increased economic uncertainty,” the IMF stated in its Global Financial Stability Report.
BRICS Expansion and Economic Weight
The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has expanded significantly since its inception in 2009. Recent additions include Iran, Egypt, and the United Arab Emirates, bringing the group’s representation to nearly half of the global population and 39% of global GDP. This expanded coalition underscores BRICS’ growing influence in shaping international economic policy and advocating for the interests of the Global South.
Ambassador Mauricio Lyrio, Brazil’s BRICS representative, emphasized the group’s priorities: “The ministers are negotiating a declaration aimed at reaffirming the centrality and importance of the multilateral trading system”. This declaration is expected to criticize unilateral trade measures, such as those enacted by the United States, and reiterate support for the World Trade Organization (WTO) as the primary platform for resolving trade disputes.
Multilateralism Versus Unilateralism
The BRICS ministers’ meeting is widely seen as a response to what the bloc perceives as a growing trend of unilateralism in global trade. “They will reiterate their opposition to unilateral measures from any source, a stance that has historically characterized BRICS nations,” said Ambassador Lyrio. The paralysis of the WTO’s Appellate Body, which has been inactive since 2019 due to US opposition to new appointments, has further complicated efforts to resolve disputes through established multilateral mechanisms.
“We fully support the multilateral trading system, based on concessions made by different countries. Ministers are negotiating a declaration reaffirming the centrality of multilateral trade negotiations. They will also need to reiterate, as they always have, their criticism of unilateral measures from any source.”
-Ambassador Mauricio Lyrio, Brazil’s BRICS Sherpa, quoted by Dawn and Agência Brasil
Dollar Dominance and Alternative Currencies
A key topic at the Rio meeting is the ongoing debate over the dominance of the US dollar in global trade. Trump has threatened to impose 100% tariffs on BRICS countries if they attempt to undermine the dollar’s role by boosting non-dollar transactions. Last year, BRICS members discussed increasing the use of national currencies in intra-bloc trade; however, Brazilian and Russian officials have described talk of a unified BRICS currency as “premature.”
Russian Foreign Minister Sergei Lavrov told Brazil’s O Globo newspaper that BRICS nations plan to “increase the share of national currencies in transactions” but are not ready to move toward a single currency. Brazilian Foreign Minister Mauro Vieira also denied any immediate plans to create a new currency, emphasizing instead the need for gradual financial cooperation.
Climate Change and Global Challenges on the Agenda
Beyond trade, the BRICS ministers are addressing other pressing global issues. Climate change is high on the agenda, especially with Brazil set to host the United Nations COP30 climate summit in Belem this November. The bloc is negotiating a declaration to promote climate financing and support for low-carbon economies, with proposals such as the Tropical Forests Forever Fund (TFFF) under discussion.
“We are currently negotiating a declaration for BRICS leaders on financing efforts to combat climate change,” said Ambassador Lyrio. He added that Brazil stands in solidarity with other emerging nations in calling for wealthier countries to take greater responsibility for climate action, in line with the Paris Agreement.
War in Ukraine and Geopolitical Tensions
The BRICS meeting also takes place against the backdrop of ongoing geopolitical crises, notably the war in Ukraine. Trump has recently shifted his stance on Russia, urging a ceasefire while simultaneously pressuring Ukraine to make territorial concessions8. The ministers are expected to discuss the bloc’s role in promoting peace and addressing regional conflicts, with a focus on strengthening the voice of the Global South in international forums.
China Denies Recent Trump-Xi Phone Call
Amid the escalating trade dispute, confusion emerged over diplomatic communications between Washington and Beijing. President Trump claimed in a recent interview with TIME Magazine that Chinese President Xi Jinping had called him. Still, China’s foreign ministry categorically denied any recent contact between the two leaders. “As far as I know, there has been no phone call between the two heads of state recently,” said Chinese foreign ministry spokesman Guo Jiakun, adding, “China and the United States are not conducting consultations or negotiations on tariff issues”.
“China and the United States are not conducting consultations or negotiations on tariff issues.”
-Guo Jiakun, Chinese Foreign Ministry Spokesman, quoted by Dawn1
Economic Fallout: Growth Downgrades and Recession Fears
The economic consequences of the US tariffs have been swift and severe. The IMF has downgraded its 2025 global growth forecast by 0.5 percentage points, now projecting only 2.8% growth, and warns that further escalation could lead to even greater losses in 2026 and beyond. The US and China are expected to bear the brunt of the economic damage, with the US facing a potential $432 billion reduction in GDP and a 1.6% increase in the price level by the end of Trump’s term, according to analysis by the Peterson Institute for International Economics.
Financial markets have responded with volatility, erasing trillions of dollars in stock market capitalization and undermining investor confidence in US assets, traditionally seen as safe havens. “It’s challenging enough for companies to plan for July when they are uncertain about reciprocal tariffs. Imagine trying to strategize for a year or even five years down the line,” remarked James Rossiter, head of global macro strategy at TD Securities, in a Reuters interview.
BRICS Expansion and the Global South’s Voice
The expanded BRICS coalition now includes 11 full members —Brazil, China, India, Russia, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates, and Indonesia —alongside nine partner countries participating in the Rio meeting. This broader representation is intended to amplify the voice of the Global South in shaping global governance, trade, and development priorities.
“A multipolar world is not just an emerging reality - it is a shared objective. A rebalanced global system must rest on a firmer foundation of fairness and representation, and no such foundation can be built without the voice of BRICS.”
-Mauro Vieira, Brazilian Foreign Minister, address at BRICS Sherpas Meeting
Unity, Uncertainty, and the Road Ahead
As the BRICS foreign ministers conclude their meeting in Rio de Janeiro, the group is expected to release a joint statement reaffirming their opposition to unilateral trade measures and their support for multilateral institutions, such as the WTO. The final communiqué is likely to address alternatives to the dollar in trade, climate change financing, and the bloc’s commitment to global peace and development.
The July leaders’ summit will provide an opportunity to assess the effectiveness of BRICS’ unified stance and its ability to influence global economic and political dynamics in the face of continued US protectionism. With the world economy at a crossroads, the actions taken by BRICS and its partners in the coming months will be closely watched by policymakers, investors, and citizens worldwide.