Trump’s 50% Tariff on Brazil: The Hidden Power Play Behind BRICS’ Rise (feat. Lula, Putin & the Yuan Challenge)

“What if I told you Trump’s 50% tariff on Brazil isn’t just about trade—it could be the start of a massive shift in global power?”

Sounds unbelievable, right? But hang on, because this tariff could spark a chain reaction that flips the entire global economic system upside down. This isn’t just about a few trade deals—this is about China, Russia, Brazil, and a new currency that might challenge the U.S. dollar’s dominance.

Ready to dive into the behind-the-scenes battle shaping the future of the world’s economy? Because what’s coming next will change how you think about money, trade, and power on a global scale. Stay with me, because this hidden strategy might just rewrite the rules of the game.


  1. The whole story kicks off with BRICS.
  2. BRICS is a term that Jim O’Neill from Goldman Sachs came up with, using the first letters of Brazil, Russia, India, and China.
  3. Back in 2001, when the term BRICS was born, it only represented about 8% of the global economy.
  4. Today, however, BRICS has exploded to make up 33% of the world’s GDP.
  5. In terms of population, BRICS now represents a massive 3.2 billion people, or 42% of the global population.
  6. BRICS keeps growing, bigger and bigger.
  7. Iran and Argentina have already applied to join, and other countries like the UAE, Algeria, Egypt, Indonesia, Kazakhstan, Senegal, Uzbekistan, Cambodia, Ethiopia, Fiji, Malaysia, Turkey, and Thailand are also eager to hop on the BRICS train.
  8. Saudi Arabia’s Prince Salman didn’t apply but got an invite to join, which is pretty exclusive.

BRICS: The New Global Powerhouse

  1. The big goal of China and Russia, the driving forces behind BRICS, is to create a common currency for BRICS.
  2. In June 2022, during a BRICS forum in Beijing, Putin suggested the idea of creating an international currency led by BRICS.
  3. Putin’s big idea was to break free from the U.S.-dominated global financial system and introduce a new international currency.
  4. Xi Jinping jumped right in, criticizing the U.S. for using its financial power to impose arbitrary sanctions that have caused havoc for people around the world.
  5. Putin’s idea for this international currency is being developed in stages.
  6. The first step is to settle trade payments between BRICS countries in the Chinese yuan, rather than using the U.S. dollar.
  7. This move doesn’t directly target the petro-dollar, as oil transactions aren’t part of the deal, but it’s still a big shift towards using yuan.
  8. And guess who took the first step? Brazil.

Brazil’s Bold Move: Betting on the Yuan

  1. Brazil has decided to settle trade with China in yuan instead of dollars.
  2. Brazil and China agreed to ditch SWIFT and use CIPS, China’s own payment system.
  3. This doesn’t directly challenge the petro-dollar but introduces a new way to handle trade and finance with the yuan.
  4. At the moment, only three countries—Russia, Iran, and Venezuela—are using yuan for oil transactions, all under heavy U.S. sanctions.
  5. Brazil is getting closer to that stage.

Lula’s Radical Shift: From Left to Center-Right

  1. Brazil’s president, Lula, is known for his bold policies, including nationalizing industries, refusing to pay foreign debts, and pushing land reforms.
  2. After two failed election attempts, Lula decided to switch things up, adopting a more center-right approach, which helped him win the presidency.
  3. In his new platform, he’s dropped his radical left-wing policies and instead focused on economic growth to appeal to a broader audience.
  4. Lula’s second term is likely to bring back some of his original left-wing ideas, especially since he doesn’t have to worry about running for re-election.

The Yuan Dilemma: Can Brazil Trust It?

  1. But there’s one big question for Brazil: can they trust the yuan?
  2. While Brazil admits it’s hard to trust the U.S. dollar, is the yuan any better?
  3. China has an answer: stablecoins backed by gold and rare earth metals, which could be used as BRICS’ common currency.
  4. That’s why China’s been steadily boosting its gold reserves and tightening control over rare earths.
  5. The BRICS common currency would be a stablecoin backed by the gold and rare earth reserves of BRICS countries, which would help protect its value.
  6. The issue with the U.S. dollar is that the U.S. can print as much as it wants, creating inflation and devaluing the currency.
  7. But the BRICS cryptocurrency would be backed by real assets, offering protection against inflation.
  8. Brazil, in particular, is keen on rare earths.
  9. China holds 36.7% of the world’s rare earth reserves, Brazil has 13.3%, Russia 15.0%, and India 5.8%. Together, BRICS controls 70.6% of global rare earth reserves.
  10. Brazil may not have much gold, but when it comes to rare earths, it could be a big player in issuing stablecoins.

Chancay Port: The Game-Changer for Brazil’s Trade

  1. Now, here’s where things get interesting. One major point of tension between Brazil and the U.S. is the Chancay Port in Peru.
  2. In November 2024, China invested about 4 billion dollar to build the Chancay Port, located 50 miles (80 km) from Lima, Peru.
  3. China’s COSCO shipping group owns 60% of the port, making it the first South American port effectively controlled by China.
  4. This is part of Xi Jinping’s Belt and Road Initiative, which is now stretching all the way into South America—an area the U.S. has traditionally considered its backyard.
  5. Chancay Port is key for Brazil, even though it’s technically in Peru.
  6. Brazil, with Chinese support, is building a $3.5 billion railroad project to connect the port to Brazil.
  7. This railroad project would shorten the shipping time to Asia, which has historically been a huge challenge for Brazil.
  8. If the project goes through, shipping between Brazil and China could be cut from 40 days down to just 25 days.
  9. This new route would allow Brazil to more easily export goods like soybeans and iron ore to China.

Lula vs. Trump: The 50% Tariff Showdown

  1. The U.S. is clearly not happy about Brazil’s growing ties with China, fearing that the Chancay Port could become a Chinese military outpost.
  2. Brazil is likely to push back hard against the U.S.’s 50% tariff threat.
  3. Brazil has a trade deficit with the U.S., and exports from the U.S. account for only 1.7% of Brazil’s GDP.
  4. Since Lula doesn’t need to worry about re-election, he’s comfortable redirecting that 1.7% to China.
  5. Just before Trump announced the 50% tariff, Lula made a strong statement at a BRICS summit, saying, “We don’t want emperors. It’s wrong for the president of a giant country like the U.S. to bully the world through online networks. We must find ways to trade globally without relying on the U.S. dollar.”
  6. Lula’s comment was a direct challenge to Trump.
  7. In response, Trump warned that he would impose an additional 10% tariff on countries supporting BRICS.
  8. This could explain why Brazil’s tariff rate suddenly jumped from 10% to 50%.
  9. Lula’s strong statement against the tariff focused heavily on the issue of currency.
  10. He said, “We’re interested in creating a currency for trade with other countries. We don’t need to buy dollars to trade with Venezuela, Bolivia, Chile, Sweden, the EU, or China. We can trade in our own currency.”
  11. Lula’s clear position is that Brazil seeks to break free from reliance on the U.S. dollar in international trade.
  12. This move is not just economic—it’s about establishing more control over trade.
  13. In the end, this conflict signals a shift in global economic power dynamics, as countries like Brazil move toward independence from the dollar.

The Ultimate Power Play: Lula’s China Moves & Trump’s Last Stand – Who Will Come Out on Top?

Lula’s not just sitting back anymore—he’s jumping headfirst into the deep end with China. From the massive Chancay Port project to the $3.5 billion railroad linking Brazil and China, he’s laying the groundwork for a brand-new economic alliance. And let’s not forget his bold move into the BRICS stablecoin game, backed by gold and rare earths, taking on the U.S. dollar and shaking up global trade.
But here’s where it gets even more interesting: Both Trump and Lula are in their final terms. No re-election to worry about. This means the gloves are off, and the intensity is about to skyrocket. The battle for global economic dominance is heating up, and both sides are ready to go all in. What happens next could reshape the entire global financial system.
Are we about to witness a new era of power—or will the old guard hold its ground? The world’s biggest economic showdown is just getting started, and you won’t want to miss a second of it.


Discover more from Alphazen Dynamics

Subscribe to get the latest posts sent to your email.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top

Discover more from Alphazen Dynamics

Subscribe now to keep reading and get access to the full archive.

Continue reading