The world is once again stirred by Donald Trump's tariff decisions. On Monday, Trump announced fresh tariffs on 14 countries, including Japan and South Korea. Before this, he sent a stark warning to BRICS countries, stating that those opposing US policies would face an extra 10% tariff. This has led BRICS member nations, including India, to sharply criticize Trump's warning.
What is BRICS?
Before understanding Trump's additional tariffs, it is important to know what BRICS is. BRICS is a group consisting of the world's emerging economies, namely Brazil, Russia, India, China, and South Africa. Each letter of BRICS represents the first letter of these countries' names.
BRICS was established in 2009, and by January 1, 2024, Iran, Egypt, Ethiopia, Indonesia, and the United Arab Emirates had joined the organization. Saudi Arabia, though not officially included, participates as an invited nation. The primary aim of BRICS is to enhance economic cooperation, development, and global balance among emerging economies.
Source: aajtak
What Has Trump Warned BRICS About?
On April 2, Trump had announced reciprocal tariffs on numerous countries, later pausing action until 1 August 2025. However, starting Monday, July 7, Trump initiated tariff impositions, affecting nations such as Myanmar, Laos, South Africa, Kazakhstan, Malaysia, and more, ranging from 25% to 40%. Furthermore, Trump, through social media, issued a warning to BRICS countries.
The US President declared via his Truth Social account that countries supporting BRICS' anti-American policies would face a 10% extra tariff, with no exceptions to this US policy. After the recent BRICS summit in Rio de Janeiro criticized US tariffs, Trump's stern response came in effect.
Reasons Behind Targeting BRICS
The critical question is whether tariffs are the only reason Trump targets BRICS, or are there other factors? Reports from experts suggest the weakening of the US dollar and a USA economy slowdown make Trump perceive global conspiracies against America.
Source: aajtak
Another major reason is the global move to reduce reliance on the dollar. For instance, BRICS founder members Russia and China engage in trade using their currencies. In 2022, Russia proposed an international currency for BRICS, challenging dollar dominance, posing a threat to US authority, heightening Trump's concerns.
Since the US turned global financial infrastructure into a tool and excluded countries like Iran (in 2012) and Russia (in 2022) from the SWIFT financial network, nations worldwide have endeavored to reduce their reliance on the US dollar and US-driven financial systems.
35% of World GDP from BRICS
Trump targets BRICS due to its massive contribution: covering 45% of the global population and more than 35% of the world’s GDP. Diminished dollar use in global trade by these nations poses a significant challenge for the US. The dollar’s value fell by 10% against the Yen and Euro recently, touching a three-year low.
Brazil's President Stands Firm
Following Trump's tariff threats, Brazil's President Luiz Inácio Lula da Silva, a founding BRICS member, dismisses Trump's warnings, insisting that the world has changed, rejecting emperors. Lula emphasized BRICS's exploration of new economic order, causing discomfort in some quarters. Meanwhile, China asserts BRICS is not against any nation.
Source: aajtak
Trump's 100% Tariff Threat
Previously, in early 2025, Trump threatened BRICS with a 100% tariff if they continued challenging the dollar’s global role. However, the latest threat is a 10% tariff. Reuters reports that Trump’s administration does not plan immediate 10% tariffs across BRICS but may take action against perceived anti-American moves by any country.
Could This Threat Pressure India?
A pertinent question is if Trump’s extra tariff warning could become a challenge for India. India, a founding BRICS member, recently endorsed BRICS' declaration criticizing US tariffs. In the tariff war context, an India-US trade deal is yet to be finalized. However, Trump asserted that a deal with India is near, despite the recent tariffs announcement.
Source: aajtak
