In the following article, which was originally published on his Geopolitical Economy website, Beijing-based US journalist and political analyst, Ben Norton assesses the impact and significance of the 17th BRICS Summit, which was held July 6-7 in the Brazilian city of Rio de Janeiro.
Ben notes that, among his daily plethora of crude threats to sovereign nations, US President Donald Trump had recently threatened to impose 100% tariffs on the members of BRICS and then claimed that the Global South economic cooperation mechanism was “dead” as a result. However, it is growing, currently with 10 members and 10 partners, as well as a number of observers participating in the summit, where measured steps towards a process of ‘dedollarisation’ ranked high on the agenda.
The Rio Summit was historic not least in the participation of socialist Vietnam and Cuba among the new category of formal partner countries. Ben observes: “This was symbolic, given that Cuba has suffered under illegal US sanctions and a devastating blockade for more than 60 years.”
He adds that, despite the country’s proximity to, and economic integration with, the United States: “Mexico’s progressive President Claudia Sheinbaum sent Foreign Secretary Juan Ramón de la Fuente to Brazil to participate, even though Mexico is not… a member or partner of BRICS.”
The steady progress of BRICS (to paraphrase the US writer Mark Twain reports of its death were clearly exaggerated) again riled the short-fused US President, who threatened its members with an additional 10% in tariffs – for Trump watchers evidently something of a climbdown from the previously threatened 100%.
This new threat brought a stinging rebuke from Brazil’s President Lula: “The world has changed. We don’t want an emperor.”
Trump also bizarrely cited Spain as a “BRICS nation”, which, in this case, he threatened with 100% tariffs. Spain is neither a member nor a partner of BRICS, which is exclusively made up of members of the Global South. Indeed, it is a NATO ally of the United States. Its social democratic government has, however, enraged Trump by condemning the Israeli genocide in Gaza, being the sole NATO member to outright refuse Trump’s demand to increase defence spending to 5% of GDP and insisting on maintaining positive relations with China.
In the following days, Trump further escalated his feud with Brazil by leaping to the defence of his fascist friend, former President Jair Bolsonaro, who is facing trial on charges of attempting a coup following his 2022 election defeat, a case with certain echoes of the violent attempt to overturn the result of the 2020 presidential election in the United States.
Lula reacted furiously to Trump’s attempt to help his fellow putschist by threatening Brazil with additional tariffs at 50%. The financial news service Bloomberg reported:
“President Luiz Inacio Lula da Silva insisted Brazil can survive without trade with the US and will look to other partners to replace it, a sharp response to Donald Trump after the American leader threatened 50% tariffs against the nation.
“‘We’re going to have to look for other partners to buy our products. Brazil’s trade with the US represents 1.7% of its GDP,’ Lula said in a broadcast interview with Record TV… ‘It’s not like we can’t survive without the US.’
“The Brazilian also said countries like his are not obliged to continue using the dollar to trade, reiterating remarks he made at last weekend’s BRICS summit in Rio de Janeiro that he acknowledged ‘likely worried Trump.’
“‘We are interested in creating a trade currency among other countries,’ Lula said in the Record interview. ‘I’m not obligated to buy dollars to conduct trade with Venezuela, Bolivia, Chile, Sweden, the European Union, or China. We can trade in our own currencies.’”
Continue reading As Trump threatens BRICS, it grows stronger, resisting US dollar and Western imperialism