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BRICS Gains Momentum As Europe Seeks New Trade Alliances

Sun 02 Mar 2025 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Taxation

The global economy is evolving under the effect of increasing trade tensions. As the United States imposes new tariffs, Europe faces a strategic dilemma. Between maintaining its traditional alliances and diversifying its economic partnerships, the continent is now looking towards the BRICS. This organization, once perceived as a counterweight to the G7, is today consolidating its position by weaving closer ties with Europe. A shift that could redefine economic and political power relations on a global scale.

A man in a suit wearing the colors of the European flag stands before two doors, one labeled "BRICS" and the other adorned with the American flag.

The impact of American tariffs on Europe and diplomatic tensions

The Trump administration initiated a protectionist shift in U.S. trade policy, a dynamic that continues today with new tariffs hitting several European products. A decision that immediately triggered reactions within the European Union. José Manuel Albares, Spain’s Minister of Foreign Affairs, notably expressed his concern: “Europe cannot simply suffer these unilateral decisions; we must redefine our approach to international trade.”

At the same time, influential political figures, such as Friedrich Merz in Germany, are advocating for a reassessment of relations with China. “We must view China not only as a competitor but also as a partner with whom we need to establish solid foundations”, he stated, reflecting a growing trend in Europe to reconsider economic alliances. These statements reflect an increased awareness of the risks of excessive dependence on the American market, heightened by the threat of trade sanctions.

The impact of these new tariffs goes beyond a simple trade war. It reveals the divergences within the EU regarding the strategy to adopt. Some member states prioritize seeking alternatives and more balanced alliances, while others remain cautious, fearing potential reprisals from Washington. Nevertheless, such a climate of uncertainty is pushing several countries to explore new avenues, particularly by strengthening their cooperation with BRICS countries.

A strategic rapprochement between Europe and the BRICS

In the face of these trade tensions, European nations are beginning to strengthen their ties with BRICS members, particularly China and India. Trade between the EU and these countries has intensified in recent years, and this trend could further accelerate. Beijing, in particular, is seizing this opportunity to consolidate its economic influence on the continent. China is offering alternatives to European infrastructure through its initiatives in the New Silk Roads, and several European countries are considering engaging more deeply.

From a strategic standpoint, this rapprochement goes beyond trade. Discussions on industrial and technological cooperation are gaining momentum. India, for example, is attracting increasing European investments in the fields of new technologies and energy transition. Such diversification of partnerships could allow Europe to reduce its dependence on American markets while accessing rapidly growing economies.

This gradual shift, however, poses challenges. The European Union must juggle divergent interests among its member states in order to maintain a diplomatic balance between the United States and its new partners. In the long term, this redefinition of international relations could reshape the global economic order, giving the BRICS a greater role in global economic and financial decisions. Europe, for its part, will have to arbitrate between economic pragmatism and loyalty to its traditional alliances.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

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