President Donald Trump escalated U.S. trade tensions by issuing an additional 10% tariff against any nation who “aligns with the anti-American policies of BRICS,” as announced at their summit in Rio de Janeiro, Reddit reported +12 (reuters +12; WsJ = 12)
Truth Social has released Trump’s declaration as part of his tariff notices sent out ahead of a July 9 deadline; tariffs will begin August 1. For more on what Trump plans, visit this post from Time’s “What Trump Says About Tariffs (and Import Taxes).”
Trump issued an explicit ultimatum with his post:
“Any country adopting Anti-American policies of BRICS will incur an Additional 10% Tariff with no exceptions…” Omniekonomi.se +11 and Reuter’s with +11 Both presstv.ir +11 And Reuter’s +11 with NO exceptions whatsoever (source).
+11 Though Trump mentioned “anti-American” policies of the BRICS nations, without providing details on which measures would trigger surcharges he promised an increase of charges for. His threat fits within his larger “America First” trade doctrine to restructure global economic ties as reported by BusinessInsider.com.
Who Is Affected? The BRICS grouping — consisting of Brazil, Russia, India, China and South Africa–recently expanded to include Egypt, Ethiopia, Iran Indonesia UAE and possibly Saudi Arabia (reuters.com/+1) for greater inclusion. (En.wikipedia/org +1)
These nations are currently deliberating reforms to global governance, de-dollarization strategies and alternative financial systems (elpais.com).
Analysts warn that emerging economies sympathetic to BRICS positions, particularly around IMF reform or currency alternatives, could face punitive tariffs from the United States if they continue aligning against its trade interests.
Timing and Mechanisms At stake is a July 9 deadline for finalizing trade discussions. If deals don’t materialize by then, tariffs will revert back to April’s levels starting August 1. Trump’s administration plans on sending “tariff letters” listing rates to approximately 100 countries by that deadline; priority will be given to 18 trading partners that contribute most heavily to U.S. trade deficit (enwikipedia.org, reuters.com and time.com are among these).
Commerce and Treasury Secretary Scott Bessent announced negotiations are taking place with economic heavyweights such as the EU, India and Thailand, offering incentives to reduce or avoid the 10 % baseline rate (wikipedia; Reuter’s; AAP News);
Thus far, only U.K. and Vietnam have signed agreements; others remain unresolved (Bloomberg.com/apnews.com, time.com etc). And to monitor how markets and diplomats will react
Financial markets reacted swiftly: U.S. stock futures declined, the dollar strengthened against major BRICS currencies, and Stoxx 600 index in Europe edged upward while Asian equities suffered substantial declines (theguardian.com/plus 1/Bloomberg +1).
At their Rio summit, BRICS leaders denounced unilateral tariff hikes and warned of potential disruptions to global trade and supply chains, according to several news sites (The Times (UK), Apnews.com and BusinessInsider).
China and Russia voiced criticisms, while Brazil’s President Lula made comparisons between it and Cold War-era Non-Alignment Movement for which Brazil participated. (reuters.com).
Strategic Context
This tariff threat signals a tougher stance from the Trump administration, already responsible for raising import levies from 2.5% to 15.8 % by mid-June; with steel and auto tariffs reaching as high as 50 %. An extra surcharge on trade between BRICS countries would further erode global trade norms.
Experts warn it could push affected states closer together under BRICS or provoke retaliatory trade measures, increasing the risk of global economy fragmentation.
As the deadline of July 9 approaches, governments must decide whether to negotiate bilateral deals or prepare for increased tariffs. One key area of uncertainty remains over which countries will be found guilty of “anti-American BRICS policies,” with this surcharge potentially increasing trade tensions further and forcing nations to evaluate which alliances they prefer between U.S. economic access and wider geopolitical allegiances.
Trump’s ultimatum highlights an intensifying contest between the U.S. and rising multilateral blocs. Trade negotiations will intensify this week as global markets and policymakers closely observe whether an emerging axis of economic influence emerges.