Japan Becomes Part of BRICS? BRICS Has Simply “Launched an Offensive” Against the U.S. Dollar
Is Japan set to join BRICS? The BRICS alliance — composed of Brazil, Russia, India, China, South Africa, and six other nations — has frequently faced challenges regarding internal unity.
However, BRICS is currently more cohesive than it has ever been. Recent reports indicate that they are attempting to lure Japan away from the G7 economic grouping.
What’s driving this shift? Two words: Trump’s tariffs.
Is Japan Likely to Join BRICS? The Odds Are Increasing
The trade conflict emerged when Donald Trump returned to the Oval Office. Initially, tariffs targeted Japanese vehicles, affecting major brands such as Honda, Toyota, and Nissan, which are integral to Japan’s national identity.
About a third of these exports were directed toward the United States, and suddenly, that channel was constricted.
Subsequently, other sectors such as electronics, semiconductors, agriculture, and even seafood were impacted. Trump took to social media to justify his actions: “America must put itself first. Even our allies cannot vulnerability breach our goodwill.”
This statement was perceived as a betrayal in Tokyo. Reports suggest that members of parliament were questioning each other, “If Japan is no longer regarded as an ally, then what is left?”
As Japan struggled, Beijing and Moscow seized the opportunity. Chinese delegations began arriving with proposals for technology collaborations, cooperative energy initiatives, and alternative payment systems to bypass the dollar.
By April, Bloomberg reported on a confidential meeting in Shanghai where officials from Japan, China, and Russia discussed the implications of full BRICS membership.
Interestingly, Japan is already engaging in significantly increased trade with BRICS members:
- Japanese exports to China surged by 14% in just six months.
- Exports to India rose by 21%, while those to Brazil increased by 18%.
- In South Africa, companies are exploring platinum and lithium ventures.
Russia remains a player too. The sanctions imposed haven’t halted the energy trade that numerous countries, not just Japan, engage in.
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Could Tariffs Forge a United BRICS?
Indian Prime Minister Narendra Modi revealed plans to visit China for the first time in over seven years following the U.S. update of a new 25% tariff on Indian imports, raising total tariffs to 50%.
The U.S. tariffs might be achieving what countless summits couldn’t: fostering closer ties.
China has already become Brazil’s leading trading partner, constituting 28% of exports and 24% of imports. Simultaneously, India and China continue to be the primary purchasers of Russian oil, enabling Moscow to endure sanctions even as its economic situation worsens.
As per IMF data, BRICS’s GDP growth exceeded the global average in 2024, achieving 4%, compared to a worldwide growth rate of 3.3% and merely 1.7% for the G7. Forecasts for 2025 suggest BRICS growth will remain above 3.4%, significantly higher than the G7’s 1.2%.
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Is Japan a Prime Prospect for Inclusion?
BRICS plans to back their new currency with a commodity basket to challenge the USD, implying that the U.S. will likely follow suit. Their gold reserves alone are inadequate.
This indicates that gold, Bitcoin, oil reserves, and rare earth minerals will be utilized.
BRICS has evolved beyond a mere coalition of developing economies. With Washington’s trade and foreign policy appearing erratic, the bloc is presenting itself as the more stable choice. Expansion is now under consideration, and nations once deemed unlikely, such as Japan, could become part of the alliance.
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Key Insights
- Is Japan on the verge of joining BRICS? The BRICS alliance — Brazil, Russia, India, China, South Africa — may have had their disputes, yet they are prepared to unify.
- Given Washington’s unpredictable stance on trade and foreign policy, the bloc is positioning itself as the more stable alternative.
The article Japan Joins BRICS? BRICS Just “Declared War” on the U.S. Dollar originally appeared on 99Bitcoins.
