As Trump presses tariff war, international investors see a shift away from U.S. economic dominance

By Cal Ramos

As U.S. President Donald Trump continues his campaign of applying new tariffs to trading partners, international investors are seeing a shift in global economic power away from the U.S. toward BRICS nations. Of special interest, are the public as well the behind-the-scenes agreements being forged to bypass U.S. influence in world commerce.

Trade experts are watching a shift in world economic power away from the United States.

Prominent international commerce investment expert Nitin Kaushik argues that the United States is past its peak as the world’s leading economic and political force. Writing on X, Kaushik described America’s decline as “the harsh truth” — a slide that mirrors the fate of every empire before it.

“For 100 years, the U.S. climbed relentlessly,” Kaushik observed. “But the peak came 12–15 years ago… and now we’re sliding down a slope every empire eventually faces.”

According to him, this decline is not just about politics but a structural shift in money, power, and innovation.

BRICS vs G7: The numbers tell the story
Kaushik highlighted that while the G7 bloc — comprising the US, Germany, Japan, the UK, France, Italy, and Canada — still controls about 43% of global GDP in nominal terms, the BRICS alliance (Brazil, Russia, India, China, South Africa) is fast catching up with nearly $29 trillion, or 28% of the global economy.

On a purchasing power parity (PPP) basis, the balance has already tilted: BRICS accounts for around 35% of world GDP compared to the G7’s 30%. “The shift is already here,” Kaushik warned.

China and India: twin engines of growth
He pointed to China’s $19.2 trillion economy and India’s $4 trillion GDP as the key drivers of this transformation. India, he noted, is poised to overtake Germany in the coming years, growing at 6.5% or more in 2024 amid massive infrastructure expansion and global trade integration.

BYD vs Tesla: EV turning point
Kaushik also underscored the technological shift in electric vehicles, where China’s BYD has surpassed Tesla. BYD recorded revenues of about $107 billion in 2024, compared to Tesla’s $97 billion, and sold nearly twice as many units.

“And yet you won’t see BYD cars in the US,” Kaushik remarked, citing heavy tariffs — first at 27% under Trump, then 100% under Biden — as protectionist shields for American automakers. But, he warned, “protectionism is a band-aid. Innovation always wins the long game.”

Drawing a parallel with the British Empire, Kaushik argued that America is on a similar trajectory. “The British once ruled the seas. Today, they’re a shadow of that empire. The US is walking that same path — and the walk has already started.”

The investor’s reality check
For investors, Kaushik suggested watching BRICS-linked commodities, currencies, and infrastructure projects, while anticipating continued volatility in US equities. “The 21st century could belong to Asia like the 20th belonged to America,” he said.

Empires, he concluded, don’t collapse overnight. They lose ground gradually — until one day, the math confirms what politics refuses to admit: the crown has already shifted.
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Credit: Business Insider