Recognizing political, economic and regulatory threats in countries of commercial interests.
The Challenges of Donald Trump's New Administration for BRICS+ and Brazilian Diplomacy
The recent U.S. administration change has broad implications for international relations, especially for BRICS+ (Brazil, Russia, India, China, South Africa, and new members). This bloc poses a significant commercial challenge to Donald Trump’s policies amid shifts like China’s expanding influence and the rise of developing economies.
Central to BRICS+ is the push for de-dollarization, with plans for a parallel currency and advancements in China’s Belt and Road Initiative reshaping trade and financial systems. Beyond economics, BRICS+ emphasizes security and defense, leveraging over six million active military personnel and technology transfers in key areas like nuclear energy, green hydrogen, AI, and space exploration. This collective ambition directly challenges U.S. global dominance.
Trump's administration has proposed tariffs on nations adopting BRICS+ currency, threatening Brazil's exports like machinery, fuels, and livestock, valued at $67 billion in 2022. However, China would bear a heavier burden, particularly in semiconductors and battery components, essential for U.S. industries like Tesla. Elon Musk’s appointment as Head of the "Department of Efficiency" highlights the strategic importance of these resources to U.S. energy and economic security.
BRICS+ currency adoption could accelerate de-dollarization, intensifying competition among major powers in trade and global institutional influence. The U.S. response hinges on mobilizing alliances and soft power to counter BRICS+ assertiveness.
The global demand for resources like lithium, vital for batteries, further complicates geopolitics. Bolivia, holding vast lithium reserves in Salar de Uyuni, has become a focal point for U.S. partnerships. Bolivia’s proximity to Brazil and its Amazonian expanse underscores the regional security stakes. The U.S.-Bolivia cooperation could strain Brazil's sovereignty over the Amazon and strategic resources.
Brazil has bolstered Amazon defense through initiatives like SISFRON and satellite surveillance but faces limitations in scale and funding. Its diplomatic tradition, exemplified by historic achievements like independence recognition, remains a key asset. Modern diplomacy via Itamaraty has successfully navigated multilateral forums, defending environmental and economic interests.
However, Brazil must enhance defense infrastructure and foster regional alliances to counter external pressures. Cooperation with Bolivia and other neighbors could strengthen South American sovereignty over resources, mitigating foreign influence.
BRICS+ initiatives—de-dollarization, shared technological advances, and defense cooperation—mark a shift toward greater autonomy for emerging economies. Yet, the U.S. response, including protectionism and strategic partnerships, highlights the bloc’s challenge to the existing global order. Brazil's position as a BRICS+ leader and regional power offers opportunities to assert global relevance, but addressing structural challenges, like modernizing defense and boosting integration, is critical.
Collaboration within BRICS+ offers pathways for sustainable development, focusing on renewable energy, cybersecurity, and digital innovation. Navigating this multipolar environment will require strategic diplomacy balancing national and collective interests, positioning BRICS+ as a transformative force amid geopolitical shifts.
Click to download full version of the article: FULL VERSION - PDF
The Challenges of Donald Trump's New Administration for BRICS+ and Brazilian Diplomacy
The recent U.S. administration change has broad implications for international relations, especially for BRICS+ (Brazil, Russia, India, China, South Africa, and new members). This bloc poses a significant commercial challenge to Donald Trump’s policies amid shifts like China’s expanding influence and the rise of developing economies.
Central to BRICS+ is the push for de-dollarization, with plans for a parallel currency and advancements in China’s Belt and Road Initiative reshaping trade and financial systems. Beyond economics, BRICS+ emphasizes security and defense, leveraging over six million active military personnel and technology transfers in key areas like nuclear energy, green hydrogen, AI, and space exploration. This collective ambition directly challenges U.S. global dominance.
Trump's administration has proposed tariffs on nations adopting BRICS+ currency, threatening Brazil's exports like machinery, fuels, and livestock, valued at $67 billion in 2022. However, China would bear a heavier burden, particularly in semiconductors and battery components, essential for U.S. industries like Tesla. Elon Musk’s appointment as Head of the "Department of Efficiency" highlights the strategic importance of these resources to U.S. energy and economic security.
BRICS+ currency adoption could accelerate de-dollarization, intensifying competition among major powers in trade and global institutional influence. The U.S. response hinges on mobilizing alliances and soft power to counter BRICS+ assertiveness.
The global demand for resources like lithium, vital for batteries, further complicates geopolitics. Bolivia, holding vast lithium reserves in Salar de Uyuni, has become a focal point for U.S. partnerships. Bolivia’s proximity to Brazil and its Amazonian expanse underscores the regional security stakes. The U.S.-Bolivia cooperation could strain Brazil's sovereignty over the Amazon and strategic resources.
Brazil has bolstered Amazon defense through initiatives like SISFRON and satellite surveillance but faces limitations in scale and funding. Its diplomatic tradition, exemplified by historic achievements like independence recognition, remains a key asset. Modern diplomacy via Itamaraty has successfully navigated multilateral forums, defending environmental and economic interests.
However, Brazil must enhance defense infrastructure and foster regional alliances to counter external pressures. Cooperation with Bolivia and other neighbors could strengthen South American sovereignty over resources, mitigating foreign influence.
BRICS+ initiatives—de-dollarization, shared technological advances, and defense cooperation—mark a shift toward greater autonomy for emerging economies. Yet, the U.S. response, including protectionism and strategic partnerships, highlights the bloc’s challenge to the existing global order. Brazil's position as a BRICS+ leader and regional power offers opportunities to assert global relevance, but addressing structural challenges, like modernizing defense and boosting integration, is critical.
Collaboration within BRICS+ offers pathways for sustainable development, focusing on renewable energy, cybersecurity, and digital innovation. Navigating this multipolar environment will require strategic diplomacy balancing national and collective interests, positioning BRICS+ as a transformative force amid geopolitical shifts.
Click to download full version of the article: FULL VERSION - PDF
Albatroz Advisory was created with the purpose of enabling companies to navigate the international market in a strategic and safe manner. We understand that global expansion is not only an opportunity for growth, but also a challenge that requires preparation in the face of a constantly changing geopolitical scenario.
Through a combination of geopolitical analysis, risk management and personalized consulting, we help organizations anticipate threats, seize opportunities and make assertive decisions. Our risk mapping is designed to keep up with the constant transformations of the international scenario, offering strategic insights for safer and more effective planning.
Solutions to reduce the impacts of exchange rate fluctuations, tax changes, consultancy on anti-dumping sanctions and political risk mapping reports.
Robust domestic market: With over 200 million inhabitants, it offers significant opportunities for consumer goods and services.
World's largest consumer market: China's growing middle class is driving demand for high-quality products and services.
Fast-growing economy: India is one of the fastest-growing economies in the world, with sectors such as technology, renewable energy and manufacturing taking center stage.
Regional hub: South Africa present as the mains gateway to African markets, with more high-level infrastructure than other countries on the continent.
Albatroz Advisory was created with the purpose of enabling companies to navigate the international market in a strategic and safe manner. We understand that global expansion is not only an opportunity for growth, but also a challenge that requires preparation in the face of a constantly changing geopolitical scenario.
Through a combination of geopolitical analysis, risk management and personalized consulting, we help organizations anticipate threats, seize opportunities and make assertive decisions. Our risk mapping is designed to keep up with the constant transformations of the international scenario, offering strategic insights for safer and more effective planning.
The first Brazilian startup focused on providing alerts about political crises and conflicts in strategic regions, for financial decision-making.
Solutions to reduce the impacts of exchange rate fluctuations, tax changes, consultancy on anti-dumping sanctions.