Trump proposes novel tariffs against BRICS nations, potentially disrupting global commerce
In a significant development that has sent ripples through the global economy, the United States has announced an additional 10% tariff on BRICS countries, including China, Russia, India, Brazil, South Africa, and its newer members. This policy, announced by former President Donald Trump during the BRICS summit in July 2025, targets any nation aligning with what is described as "anti-American" policies of BRICS, with no exceptions.
The decision, which signals a significant escalation in trade tensions with this emerging economic alliance, has implications that extend beyond the BRICS bloc. For the BRICS countries, the increased costs for exports to the U.S. could potentially reduce their competitiveness and export volumes. The move may also deepen existing geopolitical rifts, particularly as some BRICS members (notably China, Russia, and Iran) are already in contentious stances with the U.S.
In an effort to strengthen intra-BRICS trade and seek alternative markets, countries might accelerate efforts to reduce dependence on the U.S. This could include expanding the use of non-dollar currencies in their trade settlements, given previous BRICS considerations to reduce dollar reliance.
The tariff increase is also likely to prompt volatility in equity, currency, and commodity markets as investors reassess risks linked to escalating U.S.-BRICS trade tensions. Tariffs may disrupt supply chains that involve BRICS countries, pushing companies to seek costlier alternatives or re-shore production, potentially increasing inflationary pressures.
The BRICS bloc’s interest in challenging the U.S. dollar as the dominant reserve currency could gain momentum as a direct response to such punitive tariffs, influencing currency markets and international finance. The leaders of BRICS bloc have criticised Trump's tariff impositions, stating that such measures "distort trade and contradict international norms."
In response to U.S. threats, China emphasised the importance of joint efforts by BRICS countries to create a more fair and effective system of global governance. The Chinese Premier stated that BRICS countries should play a leading role in promoting reforms of global governance.
The threat of new tariffs is part of a broader trade conflict between countries seeking to redefine their role in the global economy. Many U.S. partner countries are hurriedly attempting to conclude trade agreements to avoid the imposition of additional tariffs. Volatility on financial markets underscores that these trade disputes could have significant implications for the global economy.
Countries are striving to safeguard their economic interests from potential sanctions due to global trade uncertainty. Many countries, including U.S. partners, are seeking to renegotiate their trade agreements with America. The statement adds uncertainty to global trade and intensifies tensions between the U.S. and the members of BRICS economic bloc.
As a reminder, we previously reported that teachers were promised a pay raise. This move underscores a broader U.S. strategy to counter the international influence of the BRICS alliance, seen as an emerging challenge to Western economic institutions. It may trigger retaliatory measures from BRICS members, further complicating global trade and financial stability.
- The escalation in trade tensions due to the increased tariff on BRICS countries by the United States, as announced by former President Trump, may prompt investing and wealth-management firms to reassess their strategies in personal-finance and business.
- In the realm of politics and policy-and-legislation, the tariff imposition on BRICS nations has sparked a debate, with some critics arguing that it distorts trade and contradicts international norms.
- The increased tariffs could potentially lead to a shift in the global economy, as the BRICS bloc might accelerate its efforts to challenge the position of the U.S. dollar as the dominant reserve currency in general-news and finance.
- The volatility in equity, currency, and commodity markets, as a result of the U.S.-BRICS trade tensions, may require business leaders to re-evaluate their strategies and possibly seek costlier alternatives to avoid disruptions in their supply chains.
- Amidst the tensions, the leaders of BRICS countries, including China and India, have emphasized the importance of promoting reforms of global governance, aiming to create a more fair and effective system, and counter the international influence of the U.S. finance industry.
