Latest news with #BRICS
Time of India
32 minutes ago
- Business
- Time of India
'We're going to crush your economy': US Senator warns India, China, Brazil over 'cheap' Russian oil; threatens to 'tariff the hell out'
U S Senator Lindsey Graham has warned that countries like India, China, and Brazil, all BRICS members could face sharp economic sanctions if they "keep buying cheap Russian oil." Speaking on Fox News, Graham said, "I would tell China, India & Brazil. If you keep buying cheap Russian oil, to allow this war to continue, we will tariff the hell out of you," calling for tougher action to cut off Russia's revenue amid the ongoing war in Ukraine. "And we're going to crush your economy, because what you are doing is blood money" he added. His comments come amid escalating rhetoric in the US against countries seen as financially supporting Russia during its ongoing war in Ukraine. Graham's statement aligns with broader Republican pressure on US allies and trade partners to isolate Moscow economically. US President Donald Trump, speaking alongside Nato Secretary General Mark Rutte in the Oval Office, echoed this hardline stance. He announced that the US would impose 100 percent "secondary tariffs" on nations that continue buying Russian oil and gas if Russian President Vladimir Putin does not agree to a peace deal within the next 50 days. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo Trump, visibly frustrated with Putin, said, "My conversations with him are very pleasant, and then the missiles go off at night." He emphasised that these tariffs were not the end goal but a means to bring Putin to the negotiating table. "He's fooled a lot of people," Trump said of Putin, who he called a "tough guy." "He fooled Clinton, Bush, Obama, Biden - he didn't fool me," Trump said. "We're going to be doing secondary tariffs," he added. Trump's move is part of a wider Republican plan to squeeze Putin's war finances and accelerate a resolution to the conflict in Ukraine, which has now lasted more than three years. Earlier, US Senators Lindsey Graham and Richard Blumenthal warned that countries like India, China, and Brazil, could face economic sanctions if they continue trading with Russia. "We'll continue to push for Senator Graham & my Russia Sanctions bill with even tougher penalties to deter India, China, Brazil & others from fueling Putin's war machine. Congressional action sends a powerful message of support," Senator Blumenthal posted on X. The bill proposes imposing tariffs as high as 500 percent of countries that continue buying Russian energy exports. In a joint statement, the Senators argued that nations like India, China, and Brazil are indirectly financing the war by purchasing heavily discounted Russian oil and gas. "The ultimate hammer to bring about the end of this war will be tariffs against countries, like China, India and Brazil, that prop up Putin's war machine by purchasing cheap Russian oil and gas. President Trump's decision to announce the implementation of 100 percent secondary tariffs on countries that buy Russian oil and gas if a peace agreement is not reached in the next 50 days is a real executive hammer to drive the parties to the negotiating table. The goal is not more tariffs and sanctions - the goal is to entice Putin to come to the peace table," the statement read. "Finally, as President Trump indicated, we will join our colleagues in continuing to work with the White House on our bipartisan Russia sanctions legislation that would implement up to 500 percent tariffs on countries that buy Russian oil and gas and do not help Ukraine," it added. India, a major buyer of Russian oil since the start of the Ukraine conflict, has defended its position, citing energy security and economic stability. Earlier, External affairs minister S Jaishankar said that Indian officials have already been in touch with Senator Graham over the proposed legislation. Washington is ramping up pressure not only on Russia but also on its trading partners. For countries like India, this sets the stage for potentially tough decisions in the coming weeks, balancing global diplomatic relations with national energy needs. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Sky News AU
an hour ago
- Business
- Sky News AU
Foreign Minister Penny Wong says managing China-US relationships like ‘walking a tightrope'
Foreign Minister Penny Wong has described managing diplomacy with China and the US as a 'tightrope' amid growing scrutiny of the Albanese government's international strategy. Foreign Minister Penny Wong has acknowledged the difficulty of managing diplomatic relationships with China and the US, describing it as like 'walking a tightrope'. China has increased its global diplomatic reach in recent months as President Donald Trump's administration pares back America's international presence. Amid this balancing act, the Albanese government has been accused both of letting ties with the US weaken and of leaning too heavily into its relationship with China. 'I think diplomacy is often a tightrope,' Ms Wong told Sky News on Tuesday. 'In terms of the United States, they are our ally. They're our principal strategic partner. They are also our largest investment partner. None of that changes. 'China is our most important trading destination. And it is such an important power in our region. We know that there are times where we will disagree with what China articulates. 'But the world is not only those two relationships.' She emphasised that the government's foreign policy aim is to 'advance Australia's interests in all circumstances' - balancing cooperation and disagreement. 'We obviously live in a region where China is a very, very substantial power. We are also a US ally,' Ms Wong said. She also addressed points of disagreement with China, citing human rights issues and differences over international law, including the UN Convention on the Law of the Sea. 'China seeks to become a predominant power in our region. Australia wants a balance, where no country dominates and no country is dominated,' she said. The remarks come amid ongoing scrutiny over Prime Minister Anthony Albanese's six-day diplomatic visit to China, which drew criticism for its perceived softness. — Anthony Albanese (@AlboMP) July 16, 2025 Shortly before the trip, President Trump said the US would impose additional tariffs on any country aligning themselves with the 'Anti-American' politics of the BRICS group. The BRICS organisation includes Brazil, Russia, India, China and South Africa. Critics argued that Mr Albanese taking the trip to China before having met President Trump sent a bad signal about the government's approach to international affairs. His itinerary included visits to a Giant Panda breeding centre and the Great Wall of China, alongside dining with President Xi Jinping. Former home affairs secretary Mike Pezzullo suggested Mr Albanese should have pursued a 'shorter, sharper' visit with 'blunt' discussions on Taiwan. Shadow Finance Minister James Paterson described the trip as 'indulgent', questioning whether 'a visit to Chengdu to pose with some pandas' was 'strictly necessary'. Mr Albanese defended the trip, calling it 'worthwhile' given the agreements signed on trade and tourism, and stressing the importance of fostering 'a stronger relationship'. On Australia's alliance with the United States, Ms Wong reaffirmed the importance of the partnership, describing the US as 'our principal strategic partner'. She highlighted the broader regional strategy, noting that engagement extends beyond the US and China to include countries such as Japan, India, and South Korea. The Foreign Minister also reiterated Australia's commitment to the AUKUS defence pact, calling it a 'win-win-win' for Australia, the US, and the UK.
Time of India
an hour ago
- Business
- Time of India
U.S. Vs Iran Nuclear 2.0? Trump Threatens 2nd Attack As Araghchi Vows To Keep Enriching Nukes
Putin Dollar Shock For Trump After BRICS Declaration? Russia's Big De-Dollarisation Announcement Russian Deputy Foreign Minister Sergey Ryabkov clarified that BRICS nations don't aim to replace the US dollar, but rather seek alternatives for mutual settlements to circumvent US sanctions. He stated BRICS intends to trade in national currencies, with Russia already conducting 90% of payments with partners in local denominations. This counters US President Trump's concerns and threats of tariffs on BRICS countries, who are also developing "BRICS Pay," a decentralized blockchain payment system for cross-border transactions. 42.2K views | 1 day ago
The Standard
2 hours ago
- Politics
- The Standard
Iranian foreign minister says Iran cannot give up on nuclear enrichment
Iran's Foreign Affairs Minister Seyed Abbas Araghchi, attends the opening meeting of BRICS Summit, at the Museum of Modern Art (MAM) in Rio de Janeiro, Brazil July 6, 2025. REUTERS/Ricardo Moraes/File Photo
The Diplomat
2 hours ago
- Business
- The Diplomat
Who Will Rule Crypto? The China-US Battle for Global Financial Leadership
The digital currency race between the U.S. and China is more than a technological arms race. It represents the reordering of global monetary governance. In 2025, China and the United States are deepening their rivalry in a new arena: digital currency infrastructure. In May, Hong Kong passed landmark legislation to regulate fiat-referenced stablecoins, underscoring its ambition to become a digital finance hub and align with Beijing's broader strategy to promote the digital yuan (e-CNY) as an alternative to the U.S. dollar. Meanwhile, U.S. policymakers and fintech firms are ramping up efforts to expand the reach of dollar-backed stablecoins, reflecting a growing competition over who sets the rules of the emerging digital monetary order. China's Push for a Multipolar Currency System China has been actively promoting the e-CNY, with the People's Bank of China (PBOC) announcing plans to establish an international operation center for the digital yuan in Shanghai. This initiative aims to enhance the global presence of the e-CNY and reduce reliance on the U.S. dollar in international trade. The PBOC aims to integrate the e-CNY into supply chain financing and cross-border payments – particularly between mainland China and Hong Kong – where projected usage is expected to reach $8 billion in 2025. Yet, analysts at J.P. Morgan maintain that the e-CNY is unlikely to erode the U.S. dollar's dominance in global transactions, and the data tells a clear story. In 2022, the U.S. dollar accounted for 88 percent of global FX transactions, 70 percent of foreign currency debt issuance, and 48 percent of cross-border liabilities, while the Chinese yuan made up just 7 percent of FX turnover. However, the e-CNY's role in facilitating trade within the BRICS bloc and other emerging markets could gradually erode the dollar's influence in specific regions. At the 2025 BRICS summit in Rio de Janeiro, leaders reaffirmed their commitment to de-dollarization, calling for alternative payment systems and criticizing unilateral dollar-based trade measures. The bloc has condemned unilateral tariffs, viewing them as harmful to global economic stability. BRICS is actively exploring alternative payment systems, a strategy reflected in several concrete mechanisms. The New Development Bank has issued more than $2.1 billion in local currency loans to finance infrastructure and sustainable projects, reducing reliance on dollar funding, while the $100 billion Contingent Reserve Arrangement provides member countries with liquidity support in currencies other than the dollar, enhancing financial resilience. Complementing this shift, China's Cross-Border Interbank Payment System (CIPS) has expanded significantly, facilitating yuan-denominated trade settlements and interoperating with Russia's SPFS system, thereby enabling some nations to circumvent the dollar-based SWIFT network. Trade data reinforces this trend: in 2024, China-Russia bilateral trade reached $218 billion, with a growing share settled in yuan and rubles, while India-Russia trade totaled $66 billion, much of it bypassing the dollar through local currency arrangements. U.S. Stablecoins: Regulatory Clarity and Global Reach In response to the rising importance of digital currencies, the U.S. Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) on June 17, by a bipartisan vote of 68-30, marking the first federal legal framework for payment stablecoins. This landmark legislation mandates that issuers fully back stablecoins with liquid assets, register with regulators, and meet transparency and audit requirements. Its passage is widely seen as solidifying the U.S. dollar's dominance in the digital payments domain by ensuring regulated access to dollar-pegged stablecoins. Meanwhile, Circle – the issuer of USDC, a stablecoin pegged to the U.S. dollar – is expanding globally. According to its 2025 State of the USDC Economy report, USDC circulation surged 78 percent year-over-year, surpassing $60 billion in active supply by early 2025, while total lifetime transactions exceeded $20 trillion, with a record $1 trillion in monthly volume in November 2024. USDC is now accessible to over 500 million users through more than 180 countries, supported by a growing network of global banking partnerships and cross-chain transfer protocols that facilitated over $20 billion in transfers across blockchains. In a notable move, Ant International, the overseas arm of Jack Ma-backed Ant Group, is preparing to integrate USDC into its AntChain platform once the token meets U.S. regulatory standards under the GENIUS Act. That integration would connect USDC to Alipay's massive 1 billion-plus user base and unlock new cross-border transaction capacity for regulated digital dollars. This rapid growth – with regulatory clarity following the GENIUS Act – positions USDC as a powerful means of reinforcing the U.S. dollar's digital supremacy across borders and industries. Its rising adoption among institutions and interoperability with platforms like Alipay and AntChain signal a convergence of U.S. stablecoin infrastructure with Chinese fintech reach, underpinning the dollar's competitive edge in the emerging digital economy. Implications for Global Finance The escalating digital currency rivalry between the United States and China underscores a strategic contest for influence over the future of global finance. While China's promotion of the e-CNY aims to establish a multipolar currency system, the U.S. is leveraging stablecoins to reinforce the dollar's dominance in digital transactions. This competition contributes to a fragmented global monetary landscape, where multiple digital currencies coexist, each backed by different geopolitical blocs. Such fragmentation may increase transaction costs and complicate international trade; however, it also reflects the evolving nature of global economic power structures. Recent data illustrates this shifting landscape. The U.S. dollar's share of global foreign exchange reserves declined from over 70 percent in the early 2000s to approximately 59 percent by the end of 2021, according to IMF COFER data, as countries – particularly within the BRICS bloc – pursue reserve diversification strategies. For example, central banks in emerging markets purchased over 244 metric tons of gold in the first quarter of 2025 alone, the highest quarterly volume in recent years, signaling a concerted effort to hedge against dollar dependence and enhance resilience against geopolitical and monetary shocks. These reserve shifts point to deeper structural changes in global finance. Institutions like the IMF have cautioned that the payment efficiency gains of digital money may be 'offset by financial safety-net challenges under stress,' especially in a world of diverging digital currency regimes. As the IMF warned in a 2024 policy note, 'a shift to a multipolar reserve configuration may require global reserve issuers to expand liquidity backstops' – underscoring how digital fragmentation could undermine the very stability such technologies aim to enhance. S. Yash Kalash from the Center for International Governance Innovation similarly warned that diverging digital financial infrastructures could foster 'fragmentation, capital flow volatility, and regulatory disjunctures,' particularly as countries build alliances around competing monetary technologies. Empirical research supports this trend. A 2025 study by Antonis Ballis found that rising exposure to sanctions and declining trust in Western payment networks are accelerating adoption of systems like CIPS and bilateral central bank digital currency rails, reinforcing 'digital fragmentation along geopolitical lines.' The study highlights that such networks are increasingly used not just for efficiency, but as hedges against dollar-denominated risk. Echoing this, economist Kenneth Rogoff, Harvard professor and former chief economist of the IMF, sees today as the most significant inflection point in the global currency system since the end of the gold standard. He emphasized that, while the U.S. dollar is likely to lose market share – primarily to the yuan and to a lesser extent the euro – cryptocurrencies are already chipping away at the dollar's underground economy dominance. This shift has been unfolding for over a decade due to the yuan's increased flexibility and China's development of alternative settlement systems. These trends have been accelerated by the Trump administration's policies. Rogoff suggested in an interview with Financial Times that the dollar will likely remain dominant in the short term but will face increasing challenges as the global monetary order evolves. This transition is not without cost. For financial institutions, rising fragmentation may increase settlement frictions, heighten currency risk, and complicate regulatory compliance across jurisdictions. For emerging markets, it presents a dual-edged dynamic: the opportunity to bypass dollar-dominated chokepoints, but also the risk of entrenching new dependencies – this time on regional digital infrastructure and dominant tech-finance platforms. Global financial governance institutions such as the IMF have consistently warned that the uncoordinated proliferation of digital currencies could exacerbate liquidity mismatches and undermine systemic stability during times of geopolitical stress. Ultimately, the digital currency race between the U.S. and China is more than a technological arms race – it represents the reordering of global monetary governance. As competing infrastructures harden into geopolitical blocs, the future of cross-border finance will likely be shaped not just by efficiency or innovation, but by which networks the world's economies choose to trust. In this emerging era, the politics of interoperability, access, and sovereignty will define the contours of global finance more than ever before.
