As future US President Donald Trump said he would impose a 100 percent tariff on imports of goods from BRICS countries if they stop using the US dollar as the world’s reserve currency, BRICS countries are facing a challenge in which it is necessary to secure certain raw materials for the functioning of their economies.

In the past few years, we have witnessed the beginning of a trade war that will take its toll on economies around the world. The Chinese economy, one of the main BRICS economies, is facing a shortage of agricultural products, the same products it imported from the USA. From 2022, the import of goods from the U.S. began to slowly decrease and so from $43 billion imports were reduced in just one year to $34 billion.

This decision by China was intended to reduce its dependence on American agricultural products and, on this occasion, move in the direction of its own food production for its nation. In 2025, a drastic drop in imports of American products to China and the start of a trade war are expected.

There are many reasons for this decision, that’s why China Oct. 25, 2024 launched a plan to accelerate the development of smart farms in order to subsidize the production of food for its economy in the period from 2024 to 2028.

Despite the fact that the EU and the USA began to sanction certain Chinese goods, China also hit back of its own volition. The EU introduced a 35.3% tax on the import of Chinese electric cars and received in return a 40% tax on the import of alcoholic beverages from the EU that are sold in China and whose annual exports exceed US$2.37 billion. Despite such moves, China is considering new tariffs on imports of EU products such as pork, dairy products and cars. In the event that the EU introduces new taxes on the import of goods from China, we will have an eye for an eye, a tooth for a tooth situation.

The USA introduced sanctions on certain products such as semiconductors and certain chips to China, and in return received a ban on the import of minerals that are necessary for the production of semiconductors.

The ban on the export of rare earth minerals to America had an effect on the increase in semiconductor prices. The move disabled a large number of manufacturing plants that depend on imports of cheap and rare earth minerals from China.

The current situation may escalate because in 2025 there is a possibility that the US will influence the EU and relations with the BRICS countries by harmonizing political decisions that would result in unemployment and depression. The policy of the US that pushes the EU to ruin is aimed at protecting the US industry, the only strategic move that would protect the US economy to some extent.

Analyzing the current situation and its outcome that awaits us in 2025, it is only a matter of time before we hope for the best and prepare for the worst.