Trump Warns BRICS Nations of New 10% Tariffs
US President Donald Trump has once again threatened to impose an additional 10% tariff on imports from BRICS countries, accusing the group of promoting policies that undermine the United States. Speaking during a public address after signing a new cryptocurrency regulation bill, Trump warned that any nation engaging in what he called “anti-American” trade moves would face economic consequences.
Trump asserted that the BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—was “fading out fast” and dismissed its efforts to challenge the US dollar’s global dominance.
Defending the Dollar’s Global Role
Trump’s comments focused heavily on protecting the US dollar, describing it as the cornerstone of American power. He likened any threat to the dollar’s dominance to “losing a world war,” and stated that the US would not tolerate alternative currency discussions or trade settlements that sideline the dollar.
He also claimed that his previous tariff threats were the reason for declining participation in recent BRICS summits.
BRICS Nations Respond
In response, leaders from BRICS countries rejected the accusations, maintaining that their cooperation aims at strengthening multipolar trade and not antagonising the US. Although some member states have discussed local currency transactions for cross-border trade, there are currently no concrete plans for launching a shared currency. Notably, Brazil has dropped its earlier proposal for a common BRICS tender.
Broader Trade Strategy in Focus
Trump’s statement aligns with his broader economic strategy of protectionism, especially ahead of a key August 1 deadline where trade agreements with several nations are due to be reviewed. Countries not aligning with the US’s trade expectations may face new duties, with BRICS states singled out for targeted action.
Trade officials from multiple countries, including key US partners like Japan and South Korea, have raised concerns about rising trade barriers and the implications for global supply chains.
India’s Position
India has reiterated that promoting local currency trade does not equate to abandoning the dollar. Officials clarified that India remains committed to global trade norms and values its economic relationship with the US. New Delhi has not issued any formal protest regarding Trump’s remarks.
As the US gears up for a new round of trade policy enforcement, Trump’s warnings to BRICS are expected to influence upcoming negotiations and possibly reshape multilateral trade engagements.
