Donald Trump threatens extra 10% tariff over ‘anti-American’ Brics policies

Key Points

• It seems likely that Donald Trump has threatened to impose an additional 10% tariff on countries aligning with what he calls "anti-American policies" of the BRICS group, with no exceptions.

• The evidence leans toward this statement being made on July 7, 2025, via Truth Social, during the BRICS summit in Rio de Janeiro, Brazil.

• There is controversy, as BRICS countries have criticized such tariffs as a threat to global trade, introducing uncertainty.

Background

Donald Trump, as U.S. President, has a history of using tariffs as a tool in trade policy, aiming to protect American manufacturing and jobs. This recent warning follows earlier tensions, including a 2024 threat of 100% tariffs on BRICS countries if they pursued their own currency.

The BRICS Context

BRICS comprises Brazil, Russia, India, China, and South Africa, with recent expansions including Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE. The group represents over 50% of the world's population and 40% of global economic output, making it a significant player in international trade.

Tariff Details

The proposed tariffs are set to take effect on August 1, 2025, later than an earlier deadline of July 9, 2025, for retaliatory tariffs. This policy is part of ongoing trade negotiations, with the U.S. finalizing deals with countries like the UK and Vietnam.

Reactions and Implications

BRICS finance ministers have condemned the tariff threat, stating it introduces uncertainty and threatens the global economy. This has sparked debate, with some viewing it as a protectionist measure, while others see it as a strategic move in international trade dynamics.

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Comprehensive Analysis of Donald Trump’s Tariff Threat on BRICS Policies

This note provides a detailed examination of Donald Trump’s recent warning regarding an additional 10% tariff on countries aligning with what he describes as "anti-American policies" of the BRICS group, announced on July 7, 2025. The analysis is informed by recent news reports, social media reactions, and contextual details, ensuring a thorough understanding for professional colleagues.

Event Overview

On July 7, 2025, Donald Trump, via a post on Truth Social, warned that any country aligning with the "Anti-American policies" of BRICS would face an additional 10% tariff, with no exceptions. This statement coincides with the BRICS summit in Rio de Janeiro, Brazil, which commenced on July 6, 2025, and is attended by leaders such as Narendra Modi and Cyril Ramaphosa, with Xi Jinping represented by Li Qiang and Vladimir Putin participating online.

BRICS Composition and Significance

BRICS originally included Brazil, Russia, India, China, and South Africa, established in 2009. The group expanded in 2024 to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE, with Saudi Arabia yet to formally join. Collectively, BRICS accounts for more than 50% of the world's population and 40% of global economic output, underscoring its economic influence.

Original Members (2009)	Added Members	Recent Expansions (2024)
Brazil	South Africa	Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, UAE

This expansion reflects BRICS's growing role in global trade, which may have prompted Trump's tariff policy.

Tariff Policy Details

The tariff is described as an "additional 10%," suggesting it supplements existing tariffs. Reports indicate the implementation date is set for August 1, 2025, a revision from an earlier deadline of July 9, 2025, for retaliatory tariffs. This adjustment aligns with Trump's administration finalizing trade deals, including negotiations with the UK and Vietnam, with no deal yet on UK steel taxes. Letters advising trading partners of new tariff rates, if no agreements are reached, are scheduled to be sent on July 8, 2025.

Historical Context

This warning follows a 2024 threat of 100% tariffs on BRICS countries if they moved ahead with their own currency, highlighting a pattern of using tariffs to influence international economic policies. The current 10% tariff appears to be a scaled-down measure, possibly reflecting negotiation strategies or responses to global trade dynamics.

BRICS Response and Global Implications

BRICS finance ministers, in a joint statement on July 6, 2025, criticized the rise in tariffs, stating they introduce uncertainty and threaten the global economy. This stance is consistent with previous criticisms, such as a April 2025 joint statement warning against protectionism. The tariff threat could strain relations, potentially affecting trade agreements and economic cooperation, given BRICS's significant global economic footprint.

Social Media Reactions

Recent social media posts from July 6 and 7, 2025, reflect immediate reactions, with users noting Trump's announcement on Truth Social and its potential impact. For instance, posts highlighted the tariff as a response to BRICS policies, with some emphasizing BRICS's condemnation of unilateral tariffs. These reactions indicate public and market awareness, with potential implications for investor sentiment and trade policy discussions.

Analysis and Interpretation

Trump's tariff policy aligns with his administration's focus on protecting American manufacturing and jobs, as evidenced by ongoing trade negotiations. The 10% tariff, while lower than the 100% threat in 2024, may serve as a deterrent against BRICS countries pursuing policies perceived as undermining U.S. interests, such as currency diversification. However, it risks escalating trade tensions, particularly with major economies like China and India, and could lead to retaliatory measures, further complicating global trade relations.

The timing, during the BRICS summit, suggests a strategic move to influence discussions, potentially pressuring BRICS countries to align with U.S. economic interests. The delay in implementation to August 1, 2025, may provide a window for negotiations, as indicated by the letters to trading partners.

Conclusion

In summary, Donald Trump's warning of a 10% tariff on countries aligning with BRICS's "Anti-American policies" is a significant development in U.S. trade policy, announced on July 7, 2025, during the BRICS summit. It reflects ongoing tensions, with BRICS criticizing the measure as a threat to global trade. The policy's implications, including potential economic impacts and diplomatic responses, warrant close monitoring, especially given the group's expanded membership and economic influence.

Supporting URLs:

• BBC: Trump threatens extra 10% tariff on nations that side with Brics

• Reuters: Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

• CNBC: Trump says countries aligning with BRICS bloc will face extra 10% tariff

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