'US is isolating itself, its power is fading because of BRICS': Jeffrey Sachs tears into Trump

Noted economist Jeffrey Sachs has once again hit out at US President Donald Trump and said that the United States is "a fading power" as BRICS nations expand their global influence. He said Washington continues to believe it holds uncontested authority.

"It (US) is still a powerful country. It's still a dangerous country. It has got too big a military," he said while speaking at the 2025 UNISA Founders' Lecture. "It still has its hands on the valves of the international payment system to a large extent. It can turn on and off the spigot for countries that are vulnerable."

The economist, who has opposed America's foreign policy under Trump, said the US influence over multilateral institutions remains strong. "Remember, the IMF and the World Bank are US institutions even though they are multilateral institutions. They are American-dominated institutions, and that gives continuing power."

Sachs described how the geography of Washington reflects its concentration of power. "At the 16th block in Pennsylvania is the White House. 15th in Pennsylvania is the Treasury Building. 17th in Pennsylvania is what's called the Executive Office of the US President. 18th in Pennsylvania is the World Bank. And 19th in Pennsylvania is the International Monetary Fund."

He said this proximity means decisions can be made quickly at the behest of the American President. "So, it's only two blocks from the president's office to tell the IMF what to do. You don't even need to text it. It takes 30 seconds to walk across the street to say, veto that country's program. And that's still power."

Sachs said this power is weakening as BRICS members develop their own pathways. "It's fading in part because of the BRICS. Because the BRICS are saying we don't need to be under the thumb of a US empire. That's what (Brazilian) President Lula said when he was hosting the BRICS this summer."

Recalling a dispute with Brazil, he said: "Trump put on a tariff on Brazil because he didn't like a court proceeding against the preceding president, who had tried to make a coup. And so he put on a penalty tariff, and President Lula said, 'We don't need an emperor and we're not going to succumb to this kind of pressure.'"

Sachs highlighted the scale of the expanded grouping. "10 BRICS countries have 46% of the world population and 41% of the world GDP. And they can look at the G7 and say, 'Who are you?' And that's what they're doing." 

He rejected the idea that globalisation is breaking apart. "The world is not falling apart, but the US and Europe are having a tantrum. That's different. And the world is not fragmenting. The US is isolating itself. It doesn't even go to the parties anymore. It puts on tariffs. It says, 'You can't have our market.' And the rest of the world says, 'Okay, because your market's not so important for us.’"

The economist also said that the US surrendered after China announced retaliatory tariffs and paused rare earth magnets. "Trump said, 'Okay, we're going to restrict any advanced chips going to you.' And China said, 'Okay, no rare earth magnets.' And the US, within half an hour, said, 'We surrender.'"

Sachs said the episode revealed a gap in US industrial capability, and this shift marks a significant geopolitical moment. "This is why we're at such a historic juncture. But the world is really not fragmenting. It's remaining open, and it's trading. It's just that one corner of the world is very surly. The part that used to dominate just can't figure out what's going on. And Trump is, of course, trying to flex the military muscles in a disgusting way."

Trump has accused BRICS of undermining US economic supremacy by promoting de-dollarisation. He has warned that countries supporting BRICS currency initiatives or alternative payment mechanisms could face tariffs of "10% or even 100%" under his "America First" agenda.