What could be a fresh diplomatic headache for Donald Trump? A picture of Prime Minister Narendra Modi holding hands with Iranian President Masoud Pezeshkian, with Russian President Vladimir Putin standing alongside them at the Brics Summit, has brought together three countries whose ties with Washington range from strategic competition to open confrontation.The image also echoes a remark Trump made last year after PM Modi, Putin and Chinese President Xi Jinping were pictured together at the Shanghai Cooperation Organisation summit. “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” Trump had said.This time, Iran, one of Washington’s most adversarial rivals, has joined the picture, adding another layer to the geopolitical message from a grouping that Trump has repeatedly viewed with suspicion. The US president has not yet commented on the Brics summit.
Trump pressure on Brics
US President Donald Trump has repeatedly warned Brics against challenging the dominance of the US dollar, putting the grouping’s push for greater use of local currencies at the centre of tensions with Washington. In November 2024, Trump threatened 100% tariffs on Brics countries if they backed another currency to replace the dollar.“We require a commitment from these Countries that they will neither create a new Brics Currency, nor back any other currency to replace the mighty US Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful US economy,” Trump said in a post on Truth Social.Trump has also dismissed the prospect of Brics replacing the dollar in global trade, saying there was “no chance” of that happening and warning that countries attempting to do so should “wave goodbye to America”.The issue remains central to Brics’ economic agenda, although the grouping has increasingly focused on making trade and payments in national currencies easier rather than creating a common currency. Iranian President Masoud Pezeshkian, speaking at the Brics Business Forum, called for greater use of national currencies among members, along with mechanisms to manage currency risks and facilitate reciprocal settlements.“One of the most important steps is to expand the use of national currencies in trade among the members. This step must be accompanied by the establishment of the necessary instruments for managing currency risks and reciprocal settlements,” Pezeshkian said.He also argued that the existing financial system was vulnerable because of its concentration around a limited number of currencies and called for the New Development Bank to play a bigger role in financing infrastructure and energy projects through local currencies and other mechanisms.Putin, meanwhile, did not directly mention replacing the dollar at this year’s forum. Instead, he described a broader shift in the global economic order, with emerging economies becoming increasingly important.“Right now, the world is undergoing structural, deep, profound shifts. It is explained by the fact that the so-called old leaders which used to be the vanguard of economic growth in the second half of the 20th century, are being replaced by new engines of growth. When I say old, this is just a formality – all of us understand what we are talking about,” he said.For Washington, the concern is not simply whether Brics creates a new currency, but whether a larger share of global trade and financial transactions gradually moves away from the dollar.
India walks a tight rope
For India, the Brics summit comes at a sensitive point in its economic relationship with the US. The India-US trade deal is “more or less” finalised, with the two sides working on a framework for preferential market access before signing it at an appropriate time. A few issues remain under discussion.The talks come as Trump continues to step up pressure on India over its purchase of Russian oil. In 2025, he had warned of further tariff action and later imposed 50% tariffs on Indian goods, adding to the economic stakes for New Delhi as it seeks to deepen trade with the US.
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India is meanwhile pursuing multiple trade agreements to widen market access. It has signed nine trade agreements over the past five years covering economies with a combined GDP of $60 trillion, while talks with Chile are at an advanced stage and New Zealand has been targeted for an early rollout.The balancing act is also reflected in India’s broader trade priorities. Its total exports reached $863 billion in 2025-26, including $421 billion in services, with the government seeking to diversify services exports beyond IT and professional services and expand areas such as fintech and digital services.The conflict involving Iran and the disruption around the Strait of Hormuz have added another layer to the equation. The waterway is a crucial route for global oil shipments, making stability in the Gulf directly relevant to India’s energy security, trade and the safety of Indian seafarers.
