Trump's Tariff Threat: 10% Levy on Countries Aligned with BRICS

In a bold move signaling escalating tensions between the United States and BRICS nations, former President Donald Trump announced on July 7, 2025, that any country aligning with what he termed "anti-American policies" of the BRICS group would face an additional 10% tariff. This declaration follows India's recent endorsement of a BRICS resolution condemning U.S. tariff practices, highlighting the ongoing friction in international trade relations.

Trump's statement, made through his Truth Social platform, emphasizes a hardline stance against nations cooperating with BRICS, which comprises Brazil, Russia, India, China, and South Africa. “Any country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” he asserted, indicating that the U.S. would also be sending formal tariff letters to these nations starting immediately.

This latest tariff warning is part of a broader context where the U.S. has increasingly scrutinized the economic alliances formed by BRICS nations, especially as they have shown intentions to move away from reliance on the U.S. dollar in trade. Earlier in the year, Trump threatened a staggering 100% tariff on BRICS trade should they proceed with plans to replace the dollar as a primary currency for international transactions. Speaking on this, Trump remarked, “If the BRICS nations want to do that, that’s okay, but we’re going to put at least a 100% tariff on the business they do with the United States.”

The backdrop to these developments includes the BRICS summit held in Rio de Janeiro, where member nations expressed their apprehensions about unilateral trade measures that violate World Trade Organization (WTO) norms. In a statement, BRICS leaders highlighted the detrimental effects of unilateral coercive measures, reinforcing their stance against U.S. trade policies that they view as detrimental to global economic equilibrium.

According to Dr. Sarah Johnson, Professor of International Relations at Yale University, the implications of Trump’s tariff threats could lead to a significant reshaping of global trade dynamics. “The U.S. is risking isolation by alienating key trading partners. The BRICS nations are seeking to strengthen their economic ties, and this aggressive tariff policy may compel them to further consolidate their economic bloc,” she explained in an interview on July 6, 2025.

Trade relations between the U.S. and India have also been under intense scrutiny. Since February 2025, both nations have been in negotiations for a bilateral trade agreement (BTA), with the goal of finalizing an initial phase by the autumn of the same year. However, these negotiations may be complicated by the recent tariff warnings. India has set firm boundaries on sensitive areas such as agriculture and dairy, aiming to protect its domestic sectors amid ongoing trade discussions.

In light of Trump's announcement, industry leaders are expressing concerns about the potential economic repercussions. Rajan Kabra, CEO of the Indian Trade and Commerce Association, commented, “If these tariffs are implemented, it could lead to increased costs for consumers and businesses alike, impacting global supply chains. We must hope for a more diplomatic approach rather than escalating tariffs.”

Looking forward, the international community is left to ponder the future of U.S.-BRICS relations. Should Trump’s policies remain in place, experts like Dr. Johnson predict potential shifts in alliances and trade routes, with nations re-evaluating their economic partnerships in light of U.S. tariffs. This precarious situation highlights the fragility of international trade relations, particularly in a rapidly changing global economic landscape.

As the situation continues to evolve, the reactions from BRICS nations and their strategies to counter U.S. tariffs will likely shape the economic discourse leading into the next BRICS summit in 2025. The implications of these tariff threats extend beyond immediate economic concerns, resonating through political, social, and international relations spheres, as countries navigate the complexities of global trade in a polarized environment.