“Any Country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff.”
That was US President Donald Trump’s warning to the 10-nation bloc on Monday, posted on Truth Social, in his latest and perhaps sharpest threat yet to nations engaging with the Global South alliance.
“There will be no exceptions to this policy,” Trump added, offering no clarification on what “Anti-American policies” meant — but leaving little doubt that BRICS is once again in his crosshairs.
This is far from a one-off post. Since returning to office, Trump has targeted the bloc repeatedly — labelling it “anti-American,” threatening 100% tariffs if its members attempt to undermine the US dollar, and declaring “BRICS is dead.” His pushback has come alongside escalating tariff policies that now risk fracturing global supply chains and rattling markets, according to the bloc itself.
On Sunday, just a day before Trump’s 10% tariff warning, BRICS leaders issued a joint statement calling his trade actions “ indiscriminate” and a “ threat to global economic stability.” The bloc — now expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the UAE — warned that unilateral measures like Trump’s “distort trade and are inconsistent with WTO rules.”
A deepening rift: Not just tariffs
The broader context of this standoff goes beyond trade. Trump’s confrontations with BRICS have touched on everything from cross-border payments to monetary policy and even threats of full diplomatic disengagement.
Back in February, during a blistering tirade just hours before meeting Prime Minister Narendra Modi, Trump had declared: “ BRICS is dead.” His outrage was triggered by the bloc’s ongoing discussions on reducing dependence on the US dollar.
“BRICS was put there for a bad purpose... I told them if they want to play games with the dollar, then they are going to be hit by a 100% tariff,” Trump said, adding, “They’ll come back and say — we beg you, we beg you.”
He dismissed suggestions that the bloc held any economic leverage over the US: “They don’t have us over a barrel. We have them over a barrel. If BRICS wants to play games, those countries won’t trade with us. We won’t trade with them and if any trading gets through, it’ll be a 100% tariff at least.”
While BRICS hasn’t unveiled a common currency yet, Trump has remained adamantly opposed even to the idea. “We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar,” he said in a Truth Social post earlier this year. “Or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy.”
BRICS' de-dollarisation drive: Where does it stand?
While Trump’s reactions have been dramatic, the bloc's attempts to build alternatives to the dollar have been slow and riddled with challenges.
But progress has been elusive. As Bloomberg reported, even after nearly a decade of dialogue, the bloc has made few tangible strides on a joint payment system. A survey by the Brazilian central bank is expected to be presented during the current summit, but insiders acknowledge that integrating national systems, many of which are not interoperable, remains a tall order.
Technical hurdles aren’t the only roadblock. “ The fact that several of the bloc’s currencies are non-convertible, and existing sanctions on member states Iran and Russia further complicate discussions,” Bloomberg cited one official as saying.
Another added that the cost of setting up such infrastructure may not be justified for countries already trading in local currencies through bilateral arrangements.
China, meanwhile, is taking the initiative on its own. As Bloomberg noted, it has expanded its Cross-Border Interbank Payment System (CIPS), launched yuan-based futures, and pitched its own currency as a hedge against dollar volatility, capitalizing on global unease with Trump’s trade and monetary policies.
Tariff threats and trade frictions
Beyond currency, Trump’s trade policy toward BRICS has shifted from negotiations to outright imposition. His announcement of “take it or leave it” tariff letters, which were set to be delivered to at least 12 countries on July 7, marked a break from even the transactional diplomacy of his first term.
“ I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th,” Trump posted. These would define new trade terms unilaterally — or else face the default tariff regime.
In April, Trump had already floated a 10% base tariff on all imports, warning that the rates could escalate to 70% if countries didn’t align with US trade terms by August 1.
India, China, Russia: Uneasy partners?
Trump’s escalating rhetoric also complicates US relationships with BRICS nations that Washington cannot afford to alienate, especially India. Despite close ties between Trump and Prime Minister Modi, Trump’s harsh stance could pose a diplomatic dilemma.
The US trade deficit with India has widened in recent years, and Trump’s earlier emphasis on “reciprocal tariffs” remains a sticking point. “ They charge us a tax or tariff, and we charge them the exact tax or tariff. Very simple,” he said in February.
China and Russia, already locked in strategic rivalry with Washington, are unlikely to yield to tariff threats. But for nations like India, Brazil, and South Africa — which have complex economic and diplomatic links with both East and West — Trump’s binary framing of “ with us or against us” may present uncomfortable choices.
Will Trump’s pressure fracture the bloc?
For now, BRICS leaders appear committed to economic integration, even if their pace is slow. “One of the ways to bring countries closer together is to reduce financing costs for trade operations. And one of the ways is to use more local currencies,” said Tatiana Rosito, Brazil’s Secretary for International Economic Relations, as quoted by Bloomberg.
And despite Trump’s efforts to derail the bloc’s ambitions, BRICS remains intent on developing a “multilateral guarantees initiative” to enhance creditworthiness and reduce dependence on hard currency loans.
But with the US President threatening ever-higher tariffs and dismissing the bloc’s relevance altogether, BRICS may be forced into faster coordination — or risk losing coherence under mounting pressure from the world’s largest economy.
(With inputs from agencies)
That was US President Donald Trump’s warning to the 10-nation bloc on Monday, posted on Truth Social, in his latest and perhaps sharpest threat yet to nations engaging with the Global South alliance.
“There will be no exceptions to this policy,” Trump added, offering no clarification on what “Anti-American policies” meant — but leaving little doubt that BRICS is once again in his crosshairs.
This is far from a one-off post. Since returning to office, Trump has targeted the bloc repeatedly — labelling it “anti-American,” threatening 100% tariffs if its members attempt to undermine the US dollar, and declaring “BRICS is dead.” His pushback has come alongside escalating tariff policies that now risk fracturing global supply chains and rattling markets, according to the bloc itself.
On Sunday, just a day before Trump’s 10% tariff warning, BRICS leaders issued a joint statement calling his trade actions “ indiscriminate” and a “ threat to global economic stability.” The bloc — now expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the UAE — warned that unilateral measures like Trump’s “distort trade and are inconsistent with WTO rules.”
A deepening rift: Not just tariffs
The broader context of this standoff goes beyond trade. Trump’s confrontations with BRICS have touched on everything from cross-border payments to monetary policy and even threats of full diplomatic disengagement.
Back in February, during a blistering tirade just hours before meeting Prime Minister Narendra Modi, Trump had declared: “ BRICS is dead.” His outrage was triggered by the bloc’s ongoing discussions on reducing dependence on the US dollar.
“BRICS was put there for a bad purpose... I told them if they want to play games with the dollar, then they are going to be hit by a 100% tariff,” Trump said, adding, “They’ll come back and say — we beg you, we beg you.”
He dismissed suggestions that the bloc held any economic leverage over the US: “They don’t have us over a barrel. We have them over a barrel. If BRICS wants to play games, those countries won’t trade with us. We won’t trade with them and if any trading gets through, it’ll be a 100% tariff at least.”
While BRICS hasn’t unveiled a common currency yet, Trump has remained adamantly opposed even to the idea. “We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar,” he said in a Truth Social post earlier this year. “Or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy.”
BRICS' de-dollarisation drive: Where does it stand?
While Trump’s reactions have been dramatic, the bloc's attempts to build alternatives to the dollar have been slow and riddled with challenges.
But progress has been elusive. As Bloomberg reported, even after nearly a decade of dialogue, the bloc has made few tangible strides on a joint payment system. A survey by the Brazilian central bank is expected to be presented during the current summit, but insiders acknowledge that integrating national systems, many of which are not interoperable, remains a tall order.
Technical hurdles aren’t the only roadblock. “ The fact that several of the bloc’s currencies are non-convertible, and existing sanctions on member states Iran and Russia further complicate discussions,” Bloomberg cited one official as saying.
Another added that the cost of setting up such infrastructure may not be justified for countries already trading in local currencies through bilateral arrangements.
China, meanwhile, is taking the initiative on its own. As Bloomberg noted, it has expanded its Cross-Border Interbank Payment System (CIPS), launched yuan-based futures, and pitched its own currency as a hedge against dollar volatility, capitalizing on global unease with Trump’s trade and monetary policies.
Tariff threats and trade frictions
Beyond currency, Trump’s trade policy toward BRICS has shifted from negotiations to outright imposition. His announcement of “take it or leave it” tariff letters, which were set to be delivered to at least 12 countries on July 7, marked a break from even the transactional diplomacy of his first term.
“ I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th,” Trump posted. These would define new trade terms unilaterally — or else face the default tariff regime.
In April, Trump had already floated a 10% base tariff on all imports, warning that the rates could escalate to 70% if countries didn’t align with US trade terms by August 1.
India, China, Russia: Uneasy partners?
Trump’s escalating rhetoric also complicates US relationships with BRICS nations that Washington cannot afford to alienate, especially India. Despite close ties between Trump and Prime Minister Modi, Trump’s harsh stance could pose a diplomatic dilemma.
The US trade deficit with India has widened in recent years, and Trump’s earlier emphasis on “reciprocal tariffs” remains a sticking point. “ They charge us a tax or tariff, and we charge them the exact tax or tariff. Very simple,” he said in February.
China and Russia, already locked in strategic rivalry with Washington, are unlikely to yield to tariff threats. But for nations like India, Brazil, and South Africa — which have complex economic and diplomatic links with both East and West — Trump’s binary framing of “ with us or against us” may present uncomfortable choices.
Will Trump’s pressure fracture the bloc?
For now, BRICS leaders appear committed to economic integration, even if their pace is slow. “One of the ways to bring countries closer together is to reduce financing costs for trade operations. And one of the ways is to use more local currencies,” said Tatiana Rosito, Brazil’s Secretary for International Economic Relations, as quoted by Bloomberg.
And despite Trump’s efforts to derail the bloc’s ambitions, BRICS remains intent on developing a “multilateral guarantees initiative” to enhance creditworthiness and reduce dependence on hard currency loans.
But with the US President threatening ever-higher tariffs and dismissing the bloc’s relevance altogether, BRICS may be forced into faster coordination — or risk losing coherence under mounting pressure from the world’s largest economy.
(With inputs from agencies)
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