Washington: In a move that has rattled the global economic and diplomatic landscape, U.S. President Donald Trump has threatened to impose an additional 10% tariff on any nation that aligns itself with what he terms the “anti-American policies” of BRICS. The announcement comes just as the 17th BRICS Summit convened in Rio de Janeiro, triggering sharp reactions from across the world.
The declaration, posted on Trump’s Truth Social account, signals a renewed and aggressive stance from the United States toward emerging multipolar alliances, particularly the BRICS bloc an economic coalition currently composed of Brazil, Russia, India, China, and South Africa, along with six newly inducted nations.
“Any country aligning themselves with the anti-American policies of BRICS will be charged an additional 10% tariff. There will be no exceptions,” Trump stated.
At the heart of this controversy lies the growing momentum of BRICS as an alternative to Western economic dominance, including proposals for a new trading currency and efforts to reduce dependence on the U.S. dollar. The BRICS joint declaration sharply criticized Western-led protectionism and called for a more equitable international economic system a sentiment that Trump’s camp has read as a direct challenge to American interests.
Reacting to the U.S. threat, a Chinese Foreign Ministry spokesperson noted that “there are no winners in a tariff war,” warning against a return to Cold War-style bloc confrontations. China reiterated that BRICS is not formed against any country but rather promotes global inclusivity and cooperation.
Trump’s warning was accompanied by the news that his administration is preparing to issue formal "tariff letters" to several nations starting Monday, July 8, signaling the end of a 90-day tariff moratorium introduced earlier this year. These letters will serve as preliminary notices giving countries until August 1 to negotiate bilateral trade deals with the U.S., or face tariffs ranging from 10% to as high as 70%, depending on the sector.
Treasury Secretary Scott Bessent clarified that these are not immediate tariff orders, but rather final warnings aimed at fast-tracking stalled negotiations.
Already, the U.S. has signed expedited trade arrangements with the UK and Vietnam, but major economies like India, China, Germany, and Brazil are still in talks. European leaders are rushing to secure a deal before July 9, fearing a replay of past U.S. tariffs on steel, aluminum, and automobiles.
The U.S. action is being seen as an attempt to sow division among BRICS countries, many of which rely on trade with the United States. The challenge is particularly acute for nations like India and South Africa, which maintain close ties with both the U.S. and BRICS members like China and Russia.
Despite the pressure, the BRICS declaration remained firm, stating:
“We reject economic coercion and oppose attempts to undermine sovereign trade decisions through unilateral tariffs.”
Sources close to the Indian delegation indicated that India has no intention of exiting BRICS, but will “respond pragmatically” to safeguard national interests.
Financial markets responded with caution and volatility. Analysts warn that this move could trigger a chain reaction of retaliatory tariffs, disrupting supply chains, and hurting global trade recovery. “This is not just a trade issue it’s a geopolitical flashpoint,” noted a senior economist from the IMF.
With global inflation still fragile and energy markets fluctuating, a tariff war between the U.S. and BRICS-aligned nations could have deep economic consequences, particularly for developing economies trying to stabilize post-pandemic growth.
President Trump’s ultimatum represents a high-stakes gamble one that could either coerce countries into U.S.-favorable trade deals or further accelerate the global south’s shift toward multipolar alliances like BRICS. In doing so, Washington risks isolating itself from emerging global trade currents, while further entrenching the divide between Western and non-Western blocs.
As the world watches the countdown to August 1, the question remains: Will nations bend to American pressure or will BRICS emerge stronger through confrontation.