Trump Threatens 10% Tariffs on All BRICS Nations, Including India

Advanced | July 16, 2025

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Trump’s Tariff Threats and BRICS’s Response

Trump’s Justification and Scope of Tariffs

In early July 2025, U.S. President Donald Trump issued a significant threat to global trade, announcing his intention to impose an additional 10% tariff on all BRICS nations. This proposed tariff would apply to established members like Brazil, Russia, India, China, and South Africa, as well as newer additions such as Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates. Trump justified these potential tariffs by accusing the BRICS bloc of attempting to undermine the US dollar and pursuing what he termed “anti-American” policies. He specifically emphasized that India would not be exempt from this policy, stating that BRICS was “set up to hurt us; BRICS was set up to degenerate our dollar.”

BRICS Summit Response

These bold threats coincided with the 17th BRICS summit, which took place in Rio de Janeiro, Brazil, from July 6–7, 2025. During the summit, BRICS leaders released a joint declaration that, without directly naming the U.S., expressed “serious concerns” regarding unilateral tariff and non-tariff measures. They argued these actions were inconsistent with World Trade Organization (WTO) rules and were disruptive to the stability of global trade. Brazilian President Luiz Inácio Lula da Silva offered a forceful retort to Trump’s statements, asserting, “The world has changed. We don’t want an emperor.”

Broader Implications and India’s Delicate Position

Other Proposed Tariffs and Timeline

Beyond the blanket 10% tariff on BRICS countries, Trump also announced or reiterated intentions for a 50% tariff on imports from Brazil, 25% on goods from South Korea and Japan, and a potential 200% on pharmaceuticals. Furthermore, discussions are underway for a staggering 500% tariff on countries importing Russian oil, a move that could significantly impact major importers like India and China. These new tariffs are largely scheduled to come into effect on August 1, 2025, following the expiration of a 90-day pause designated for trade deal negotiations.

Economic Power of BRICS

BRICS, now comprising 10 full members, represents a formidable global economic force. The bloc collectively accounts for approximately 45% of the world’s population and contributes over 35% to the global Gross Domestic Product (GDP). It is also responsible for 24% of global commercial exchanges and a substantial 39% of global GDP. Given that U.S. imports from BRICS nations totaled $886 billion in 2024, a 10% tariff alone could generate over $88 billion in additional duties. This puts significant weight behind Trump tariffs on BRICS including India as a global issue.

India’s Diplomatic Tightrope

India finds itself in a particularly delicate balancing act amidst these developments. The country is currently negotiating a significant trade deal with the U.S., potentially covering goods worth $150–200 billion, while simultaneously navigating its crucial role within the BRICS alliance. Indian officials have sought to clarify their position, suggesting that undermining the US dollar is not India’s objective, thereby aiming to differentiate its stance from other BRICS members, particularly China and Russia. From the U.S. perspective, these tariffs are viewed not just as economic measures but as a “symbolic strike” and a “geopolitical weapon” against a bloc perceived to challenge American global economic dominance.

Looking Ahead

This evolving situation highlights the escalating trade tensions and complex geopolitical dynamics shaping international relations in mid-2025. The coming months will reveal the full impact of Trump tariffs on BRICS including India and the resulting effects on global trade, individual economies, and the intricate balance of power between major international blocs.

Vocabulary

Impose (verb): To force something unwelcome to be accepted or put in place.
- Example: “The government decided to impose new taxes on luxury goods.”
Tariff (noun): A tax or duty to be paid on a particular class of imports or exports.
- Example: “The proposed tariff on imported cars would make them more expensive.”
Undermine (verb): To lessen the effectiveness, power, or ability of, especially gradually or insidiously.
- Example: “Constant criticism can undermine a person’s confidence.”
Bloc (noun): A group of countries or political parties that have formed an alliance.
- Example: “The BRICS bloc held its annual summit to discuss economic cooperation.”
Coincide (verb): To occur at the same time or during the same period.
- Example: “His birthday happens to coincide with a major national holiday.”
Unilateral (adjective): Performed or undertaken by only one person or party without the agreement of another or others.
- Example: “The country made a unilateral decision to withdraw from the treaty.”
Disruptive (adjective): Causing or tending to cause disruption.
- Example: “The new technology could be disruptive to traditional industries.”
Balancing act (noun): A difficult situation in which one tries to satisfy two opposing demands or needs.
- Example: “Managing work and family life is often a delicate balancing act.”
Differentiate (verb): To recognize or ascertain what makes (someone or something) different.
- Example: “It’s important to differentiate between facts and opinions.”
Dominance (noun): Power and influence over others.
- Example: “The company’s long-standing dominance in the market is now being challenged.”

Discussion Questions (About the Article)

What specific reasons did Donald Trump give for threatening tariffs on BRICS nations?
How did BRICS leaders, particularly Brazilian President Lula da Silva, respond to Trump’s threats during their summit?
Besides the 10% tariff on BRICS, what other tariffs did Trump announce or reiterate intentions for?
Why is India’s position described as a “delicate balancing act” in this situation?
What is the U.S. perspective on these tariffs, according to the article?

Discussion Questions (About the Topic)

How might these new tariffs affect global trade and economic relations?
Do you think tariffs are an effective tool for achieving political or economic goals? Why or why not?
What are the potential long-term consequences of countries trying to “de-dollarize” or reduce reliance on the US dollar?
How do you think BRICS nations might respond to these economic pressures from the U.S.?
In your opinion, what role should international organizations like the WTO play in disputes involving unilateral tariffs?

Related Idiom

A delicate balancing act

Meaning: A difficult situation in which one tries to satisfy two opposing demands or needs.
Example: “Navigating both the BRICS alliance and trade negotiations with the U.S. is proving to be a delicate balancing act for India.”

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This article was inspired by: Reuters, July 8, 2025