President Trump has made it clear: “The dollar is king. We’re going to keep it that way.”¹

His policies are squarely aimed at protecting the U.S. dollar and safeguarding America’s global standing. But in pushing back against rising threats abroad, there’s an unintended consequence: the BRICS nations are being driven closer together and their coordinated moves could strike at the heart of the American economy.

The stakes aren’t just abstract geopolitics. They reach directly into the value of your retirement savings.

BRICS Rising

BRICS already control about 40% of global GDP. And it’s not just Brazil, Russia, India, China, and South Africa anymore. New members, including Egypt, Ethiopia, Iran, and the UAE, have joined, expanding their economic reach.

In fact, BRICS nations have surpassed the G7 in global output, with BRICS accounting for 35% of the world’s GDP compared to the G7’s 28%. That’s a stunning shift in economic power.²

This alliance isn’t just about size. It’s about strategy. And Trump’s tariffs, including doubling duties on Indian imports to as high as 50%, may be unintentionally strengthening BRICS. Especially by nudging India further into the bloc’s orbit.

As former Ambassador to China Nicholas Burns explained, “The Chinese were threatened by the strength of the allies pushing together against them.” The result? BRICS has circled the wagons against what they see as Western pressure. ³

A Direct Threat to the Dollar

For decades, the U.S. dollar has been the world’s reserve currency. That dominance has given America unparalleled influence. But BRICS is building alternatives.

They’ve launched the New Development Bank and the BRICS Pay system. And most recently, they pivoted toward bilateral trade in local currencies rather than a single “BRICS currency.” Brazil’s Finance Minister Fernando Haddad openly criticized the White House for “weaponizing the U.S. dollar,” and defended BRICS’ right to trade in local money.

This isn’t just talk. Bilateral trade in local currencies reduces costs, boosts domestic currencies, and undermines the dollar’s role in global markets. It’s a direct jab at the dollar’s dominance.

The U.S. has seen this kind of challenge before. In the 1970s, OPEC experimented with pricing oil in a basket of currencies. That effort fizzled. But it sparked temporary surges in gold as investors hedged against dollar uncertainty.

Today, the risk is greater. Exploding U.S. debt is crushing reserve demand for Treasuries. China has cut back its U.S. Treasury holdings to the lowest level since 2009. If that trend continues, America could face higher borrowing costs, spending cuts, and a diminished global position.

As David Chen, Senior Analyst at Morgan Stanley, put it: “While the immediate impact might be increased volatility, the long-term implications for the dollar’s dominance are substantial.”⁴

Control of Critical Resources

It’s not just currencies where BRICS has the edge. It’s resources.

According to the U.S. Geological Survey, BRICS nations hold the lion’s share of global rare-earth reserves. Nearly 85% of the world total. These materials are essential for electric vehicles, clean energy, smartphones, and military technology.

China dominates the supply chain with 70% of mining, 90% of processing, and 93% of magnet manufacturing. The U.S., by contrast, relies on imports for 80% of its rare earths. Nearly 70% of which come from China.⁵

This creates what analysts call a “triple lock”: BRICS nations control the mines, the refining choke points, and the industries that depend on them.

The leverage is staggering. More than 90% of the world’s smartphones were assembled in China, India, and Vietnam in 2024. Add in the resources from new BRICS members, and the bloc’s grip on the supply chain is only tightening.

The Consequences for Americans

If BRICS succeeds in creating a multipolar financial world, the U.S. dollar may lose its de facto reserve status. That could mean a permanent shift in how value is stored and transferred globally.

For ordinary Americans, that spells one thing: risk to dollar-denominated assets like stocks and bonds. And since most retirement funds are tied to those assets, the danger hits home.

We’re already seeing the early signs. For the first time since 1996, central banks’ foreign exchange holdings contain more gold than U.S. Treasuries. Gold now accounts for 20% of global central bank reserves, surpassing even the euro at 16%. The dollar still leads with 46%. But its share is slipping.⁶

In plain terms: global institutions are preparing for a future where the dollar is weaker. And they’re protecting themselves with gold.

Protecting Your Retirement

President Trump is right to fight for the dollar. But even as he does, the BRICS nations are working tirelessly to reduce America’s influence. Their combined strength in resources, manufacturing, and finance creates real risks for the U.S. economy. And for your retirement.

The good news? You don’t have to be powerless. Physical gold has always been the ultimate store of value in uncertain times. With central banks increasing their gold holdings and global finance shifting, gold’s role as a hedge is stronger than ever.

At American Hartford Gold, we help Americans protect their savings with Gold IRAs. So you can hold physical gold in your retirement account. If BRICS continues its march, the value of gold could rise even further, making now a critical time to act.

To learn how you can safeguard your savings, call us today at 800-462-0071.
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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes:

1. https://watcher.guru/news/trump-vs-brics-the-hidden-role-of-us-policy-in-chinas-expansion

2. https://menafn.com/1109992106/BRICS-Nations-Surpass-G7-In-Global-Output-US-Economist

3. https://watcher.guru/news/trump-vs-brics-the-hidden-role-of-us-policy-in-chinas-expansion

4. https://www.interactivecrypto.com/brics-currency-shift-could-skyrocket-bitcoin-to-150000heres-why

5. https://www.indiatoday.in/diu/story/world-tech-runs-on-rare-earths-and-brics-sco-owns-the-supply-chain-2778866-2025-08-29

6. https://www.bloomberg.com/news/articles/2025-06-11/gold-rally-sees-it-overtake-euro-as-world-s-2nd-reserve-asset