Donald Trump’s latest call for an additional 10% tariff on any country supporting the BRICS alliance is speeding up what Nigel Green calls a “structural reassessment” of U.S. economic leadership. The CEO of deVere Group says investors are reacting by reallocating capital toward regions less exposed to American political risk.
“This policy announcement is confirmation of a growing narrative that the US is drifting toward economic isolation,” Green said. “Investors are reacting to that — not with panic, but with reallocation.”
Higher levies will apply to countries that haven’t finalized trade deals with the United States
Trump’s message, posted Sunday on Truth Social, comes as a 90-day pause on steep tariffs nears its end. Starting August 1, higher levies will apply to countries that haven’t finalized trade deals with the United States. So far, only China, Vietnam, and the UK are shielded. Allies like the EU, Japan, and South Korea remain at risk. “Tariffs were once a bargaining tool. Now they’re a permanent threat,” Green said. “That changes how markets view American reliability.”
The expanded BRICS bloc, which now includes Saudi Arabia, Iran, Egypt, and Ethiopia, issued a joint statement from its summit in Rio de Janeiro condemning unilateral trade measures. Leaders emphasized their intent to accelerate cooperation and insulate their economies from outside pressure.
“The message from BRICS is to build around the US, not with it,” Green said. “That’s a direct consequence of Trump’s strategy, and it’s setting the stage for a less US-centric world economy.”
Market behavior has already begun to reflect this shift
Market behavior has already begun to reflect this shift. The U.S. dollar index weakened again on Monday, with investors focusing more on geopolitical risk than central bank policy signals. Europe’s major indices were mixed: the FTSE 100 dropped 0.1%, the CAC 40 stayed flat, while the DAX edged up 0.4%.
Gold held firm at around $2,370 per ounce, and Bitcoin crossed $109,000 — its highest level in nearly a month — as capital sought perceived safe havens outside of government-linked systems. “This is a repositioning around resilience,” Green said. “The flow into gold and Bitcoin isn’t about fear — it’s about building protection against political volatility, and Washington is now a central part of that volatility.”
According to IMF data, global trade growth has slowed to 1.8% in 2025. Meanwhile, foreign direct investment into the United States dropped 5.2% in the second quarter. Green said the rebalancing of capital flows is not a panic-driven exit, but a methodical pivot. “Washington is testing the patience of its allies and the tolerance of the market,” he said. “And while that may work domestically, internationally it’s triggering a search for alternatives.”
“Investors are increasingly looking to avoid overconcentration in US-linked assets”
Green warned that investors cannot afford to wait for resolution. “Waiting for clarity is not a strategy. This is the clarity,” he said. “Investors are increasingly looking to avoid overconcentration in US-linked assets and build exposure to regions that are actively hedging against American pressure — especially Asia, Latin America and the Middle East.”
He also highlighted the BRICS bloc’s pursuit of alternative currency mechanisms and cross-border trade structures as evidence that the post-war economic order is already evolving. “The shift won’t happen overnight, but it’s happening,” Green said. “If the world starts trading less in dollars, investing less in US bonds, and building fewer supply chains through the States, that’s not a future risk. That’s a current one.”
With new tariff enforcement letters expected to go out and no signs of a diplomatic backtrack, Green expects investor recalibration to deepen. “This strategy may generate short-term leverage, but it’s setting up long-term loss,” he said. “Washington is trying to weaponize trade. The world is responding by building its defences — and that will have lasting consequences for markets and the US and global economies.”
