Trump's BRICS Tariff Threats
1. Latest Development (2025)
- Trump Threatens Tariffs: Additional 10% tariff on all BRICS members post-Rio Summit.
- Targeted Tariffs:
- 50% on Brazil (alleged bias against Bolsonaro).
- 30% on South Africa (trade disputes + Afrikaner rights).
- Sanctioning Russia Act (2025): Proposes 500% tariffs on Russian oil – impacts India & China as major importers.
2. Underlying Triggers
- Anti-Dollar Moves: BRICS promoting local currency trade & cross-border payment systems (bypassing USD).
- Expansion Fear: BRICS added Egypt, Ethiopia, Iran, UAE, Indonesia (now 10 members), with more applicants.
- Geopolitical Tension: Trump labels BRICS "anti-American" for challenging U.S. financial hegemony.
3. BRICS Response (Rio Summit 2025)
- Denies De-Dollarization: Clarifies local currencies aim for trade efficiency, not replacing USD.
- Criticizes Unilateralism: Condemned U.S. tariffs but avoided naming U.S. explicitly in the Rio Declaration.
- Diplomatic Restraint: Addressed attacks on Iran’s infrastructure without blaming U.S./Israel.
4. India's Stance
- Rejects "Anti-American" Tag: EAM Jaishankar asserts no policy to replace USD.
- Distances from Common Currency: Notes Russia’s proposal was not endorsed by all members.
- Balancing Act: Stays in BRICS but avoids anti-West posture; prioritizes strategic autonomy.
**Key terms and their Relevance **
| Term | Relevance |
|---|---|
| De-Dollarization | Reducing global reliance on USD; spurred by U.S. sanctions (e.g., Russia’s SWIFT ban). |
| BRICS Expansion | Original 5 (B,R,I,C,S) + 5 new (Egypt, Ethiopia, Iran, UAE, Indonesia) = 10 members. |
| Unilateral Tariffs | Violate WTO principles; trigger trade wars & global inflation. |