An Economic War Begins
The U.S. triggers an economic war with aggressive tariffs, pushing nations toward the rising BRICS bloc and accelerating the decline of its own financial dominance.
Introduction
The United States has triggered an economic conflict, not with a single adversary, but with the world. Under a new administration, trade policy has been replaced with blunt force.1 Threats have become the primary tool of diplomacy. This is the story of how a nation's aggressive posture is unraveling its own power, alienating allies, and accelerating the rise of a new global order centered on BRICS.
The current American economic strategy is one of brute force. The U.S. Treasury Secretary delivered a message of tariffs and ultimatums.2 "We sent the letters. 100." These words, devoid of context, were a signal. Comply or face economic collapse. The approach is not based on negotiation or shared interest. It is a series of commands. This has set off a chain reaction. Global markets have reacted with immediate, sharp drops. The world is watching as the United States uses its former position of power to bully instead of lead. This is not just a shift in policy; it is the chaotic unraveling of a system that once worked.
A Doctrine Without Direction
The administration's trade policy is a containment strategy with no walls. The threats of 10% penalty tariffs on any nation involved in "anti-American BRICS activity" are vague and undefined. This ambiguity means that any country trading with China in yuan, or simply exploring alternative reserve assets, could be hit. The policy is not a precise instrument; it is a hammer swinging wildly. It punishes by implication and association.
The irony is that the very system being weaponized—the WTO, the IMF, SWIFT—was built by the U.S. itself. Now, as BRICS nations build their own counter-order based on commodities and a multipolar worldview, those same structures are being used to cut the U.S. out. This is not leverage. It is a desperate show of force from a nation whose economic dominance is in decline. In 2000, the G7 held 70% of global GDP. Today, that number is 43%. BRICS, meanwhile, has grown from 18% to 34% and is still gaining speed. A tariff letter holds little power when the world has already moved on.
The Financial Pivot Away from the Dollar
Global capital is moving. Quietly but permanently. Foreign purchases of U.S. treasuries have plunged by $289 billion. BRICS nations are the biggest sellers. This is not random divestment. It is a structural pivot. As more and more trade is settled outside the dollar, there is less need to hold U.S. government debt. This weakens the dollar and drives up the cost of borrowing for Washington. The boomerang effect is already happening.3
China's response has been to amass gold.4 The People's Bank of China has added tens of thousands of troy ounces to its reserves in recent months.5 Gold, unlike the dollar, is not beholden to U.S. political dysfunction, sanctions, or debt ceilings. It is a neutral store of value. The metal that was once stripped of its monetary status by the U.S. is now being remonetized by Beijing. This pivot is not confined to Asia. A German church pension fund, an institution tied to the very heart of the Western establishment, recently allocated $50 million to a Hong Kong-based China equity fund. This is European capital flowing into a market the U.S. calls adversarial. Capital, ever pragmatic, is looking for stability and returns, not for political allegiance.
The Costs of Domestic Policy
Washington's policies are not only pushing global partners away, but they are also harming the domestic economy.6 The new $3.4 trillion tax expansion is projected to balloon the deficit and inject more adrenaline into an already overheated inflation. A joint committee on taxation reveals that the top 20% of earners will gain, while the bottom 20% will lose. Tariffs will raise consumer prices.7 This is a perfect storm.
The wealthy will redirect their assets overseas. The middle class will be squeezed, and their spending will contract.8 Growth will slow, and businesses will stagnate.9 This is the 1970s inflation spiral, but on a globalized, turbocharged scale. The Peterson Institute warns of 15% to 20% inflation if new tariffs take full effect. This is not just an economic risk. It is a political risk. It is a moral risk. It is a risk of civil unrest. On the other side of this divide, BRICS economies are cutting rates and expanding credit. The contrast is stark. One side retreats into protectionism; the other builds new bridges.
Conclusion
The postwar global trade consensus is fracturing. The U.S., through a series of aggressive and uncalibrated actions, is accelerating its own isolation. The reliance on threats and tariffs, a strategy of blunt force, has proven ineffective. It has alienated allies and pushed partners toward the BRICS bloc. The world has heard Washington's message, but it no longer has to listen. Capital is moving, not in a panic, but in a quiet and strategic realignment. BRICS nations are building a parallel financial ecosystem, one that functions outside of U.S. oversight and control.10
What is at stake is the future of global power. The moral imperative is clear: the United States must choose. It must choose between competition and coercion, between innovation and insulation. The current path of protectionism and division will lead to a diminished role in a world that is already moving on. A system built on bullying will not stand. It will not earn trust. It will not hold a fractured world together. It is time for a new approach, one based on honest engagement, not on vague threats shouted into a collapsing echo chamber. The gravity of global markets will pull capital to where it finds function, not where it finds a flag.
Takeaways
The U.S. is using blunt force and vague threats of tariffs to control global trade.
BRICS nations, and many U.S. allies, are ignoring these threats and realigning their economic interests.
Global capital is moving away from U.S. assets and into BRICS economies.
China is amassing gold to insulate itself from U.S. political and economic instability.11
The U.S. is enacting domestic policies that benefit the rich while squeezing the working class, a move that could lead to economic stagnation and social unrest.
Source
Ancient Craft | Trump Threatens BRICS: 100 Countries Cut Ties With U.S. After China Shuts Wall Street Access