Is Iran Just a Pawn? Trump’s Push to Protect the Dollar Could Threaten BRICS – Is India in a Bind?

Amid the flames of unrest in Iran, U.S. President Donald Trump appears to be pursuing a delicate diplomatic balancing act. On the surface, he is expressing support for protesters challenging the Iranian regime, while simultaneously threatening military intervention and imposing punitive 25% tariffs on countries trading with Iran. A closer look, however, suggests a larger strategy: Trump may be attempting to undermine BRICS, an emerging economic bloc he sees as a potential threat to the dominance of the U.S. dollar.

India Faces Pressure from Trump’s Iran Policy
Although the 25% tariffs on Iran-trading nations are not expected to directly impact India, government sources cited by The Hindu indicate that New Delhi is preparing to scale back trade with Iran further during the current fiscal year due to “external economic factors.” This comes even as India and Iran mark the 75th anniversary of their diplomatic relations—a milestone that could have been celebrated with closer economic ties.

BRICS Summit in India Amid Rising Tensions
Trump’s tough stance on Iran has cast a shadow over the potential visit of Iranian Foreign Minister Seyed Abbas Araghchi to India this month. Speaking at the launch of the logo for BRICS 2026, Indian External Affairs Minister S. Jaishankar emphasized India’s vision as the current BRICS chair, highlighting the importance of intergovernmental cooperation capable of withstanding “global shocks.” Russian Ambassador Denis Alipov and Iranian Ambassador Mohammad Fathali were among the dignitaries present.

Is Trump Trying to Undermine BRICS?
India is a founding member of BRICS, along with Brazil, Russia, China, and South Africa. Iran joined the bloc on January 1, 2024, with Egypt, Ethiopia, Saudi Arabia, the UAE, and Indonesia also becoming members in the expanded group. The United States views an enlarged BRICS as a growing challenge, particularly due to its agenda promoting international trade outside the U.S. dollar system. As such, the possibility of military escalation in Iran cannot be dismissed as a separate maneuver—it may also be part of Trump’s strategy to weaken BRICS.

The Dollar at Stake
At the July 2025 BRICS summit in Rio de Janeiro, member nations discussed a cross-border payments system that would allow transactions in local currencies, bypassing the U.S. dollar. India welcomed the initiative, noting its potential long-term benefits. The United States, however, has been wary of any development that could diminish the dollar’s centrality in global trade.

India’s Diplomatic Challenge
India is set to host the BRICS 2026 summit this year, with the possible participation of Iranian President Masoud Pezeshkian. Amid Trump’s aggressive posture toward Iran, New Delhi faces a delicate balancing act. The challenge is amplified by India’s ongoing energy imports from Russia, which have already drawn U.S. scrutiny. Navigating Iran policy while maintaining India’s leadership role in BRICS will test New Delhi’s diplomatic acumen.