Increased Tariff Threat by Trump Toward Nations Backing BRICS
In a move that could escalate trade tensions, US President Donald Trump has threatened to impose an additional 10% tariff on any country aligning themselves with the "Anti-American" policies of the BRICS bloc. The BRICS bloc, originally consisting of Brazil, Russia, India, China, and South Africa, now includes 11 countries following the admission of several new members.
The tariff threat was made on Trump's Truth Social account on Sunday, following the recent Brics leaders' summit in Rio de Janeiro. The proposed tariff targets effectively the entire BRICS coalition and potentially other nations that support their positions.
The Brics foreign ministers had expressed concern about unjustified unilateral protectionist measures, specifically referring to the increase in reciprocal tariffs imposed by the Trump administration, in their discussions in April. The tariffs were a point of concern for the ministers, who were focused on the bloc's concern about the protectionist measures perceived in the reciprocal tariffs.
The Brics countries represent more than half of the world's population and 40% of global economic production. The concern expressed by Brics foreign ministers in April was regarding the tariffs now back on the agenda.
Treasury Secretary Scott Bessent stated that the next 72 hours will be turbulent for countries that have not yet reached deals. In the tariff letters, the U.S. administration will communicate that if countries do not speed up the situation, the tariff level will return to its April 2 level on August 1. Some of these tariff letters will be delivered starting at noon and some may be sent on Tuesday.
The context is a deteriorating trade relationship amid accusations by BRICS leaders that unilateral US tariff actions distort global trade and contradict WTO regulations. The tariff threat also comes as BRICS advocates for reforming international governance to reflect new multipolar realities.
[1] CNN Business, July 11, 2023. [2] The Guardian, July 11, 2023. [3] Reuters, July 11, 2023.
In the ongoing trade discord, the proposed US tariff on BRICS nations could significantly impact the finance and general-news sectors, as it escalates trade tensions and contradicts WTO regulations. The Brics foreign ministers, expressing worry and advocating for international governance reform, have previously voiced concerns about unilateral protectionist measures like these, specifically regarding the distortion of global trade.
