OBELA Analysis

After Trump's return, the US has pushed a policy of budget cuts, economic deregulation, and trade war against its main partners: Canada, Mexico, Taiwan, and China. The explicit objective is to strengthen the US economy, and the implicit objective is to weaken China and its allies. After two and a half months in office, the effect has been negative on neighboring countries and has forced the Asian giant to take countermeasures.

In October 2024, the 16th BRICS summit was held in Kazan, Russia. One of the central themes was financial cooperation, which consisted of increasing trade in local currencies, which would benefit from reducing transaction costs, avoiding US trade sanctions and reducing payment processing times. In addition, it allows for greater exchange rate stability because it avoids the dollar's instability.