How BRICS Responds to New Trump Tariffs: Trade War Explodes

2025-07-08

As global tensions rise, President Donald Trump’s latest threat to impose an additional 10% tariff on countries aligning with the BRICS bloc has drawn sharp rebukes from the emerging coalition. At the recently concluded 2025 BRICS summit in Rio de Janeiro, the group—comprising Brazil, Russia, India, China, South Africa, and new members like Indonesia, Egypt, Iran, and the UAE—pushed back strongly against what they described as an “imperial” posture from Washington.

Trump’s declaration signals a renewed phase of tariff-led diplomacy, one that risks triggering a deeper, more volatile trade war. With a looming deadline for expanded tariffs on U.S. allies and BRICS countries alike, global markets, supply chains, and diplomatic relations are bracing for impact.

BRICS Pushes Back Against Trump’s Tariff Threats

The BRICS alliance swiftly dismissed Trump’s claim that their policies are “anti-American.” Brazilian President Lula da Silva emphasized that the world “does not want an emperor,” rejecting the premise that economic multipolarity equals hostility to the United States.

At the summit, BRICS issued a joint declaration promoting multilateral cooperation, peace, and reform of international financial institutions. While not naming the U.S. directly, the language clearly targeted Washington’s approach, particularly its use of unilateral trade barriers and sanctions as geopolitical tools.

Additionally, BRICS reiterated efforts to build economic alternatives—including the reduction of reliance on the U.S. dollar, the exploration of digital currency frameworks, and the expansion of local currency trade settlements. Trump and key White House advisors view these moves as undermining U.S. financial dominance.

Trump’s Strategy: Tariffs as Economic Leverage

President Trump has doubled down on his signature policy tool: tariffs. Speaking at a July press conference, he announced an additional 10% tariff on countries “embracing BRICS anti-American policies”, signaling that nations deepening ties with the bloc could face punitive measures.

However, U.S. officials later clarified the tariffs are not yet in effect and would depend on whether a country adopts what the administration labels “hostile” economic stances. This ambiguity keeps foreign governments on edge, allowing Trump to wield economic pressure without immediate implementation.

Beyond BRICS, Trump is also targeting allies such as Japan, South Korea, and Malaysia, threatening tariff hikes of 25% to 40% unless bilateral trade agreements are finalized by August 1, 2025. So far, only a few countries—like the UK and Vietnam—have secured last-minute exemptions.

Rising Trade Tensions and Economic Fallout

Trump’s strategy is having a chilling effect on global trade diplomacy. The threat of sudden tariffs undermines supply chain predictability and creates financial volatility, especially for emerging economies.

Despite this, BRICS members appear unified and undeterred. The group’s messaging signals a willingness to pursue alternative financial infrastructures and de-dollarization, even in the face of U.S. retaliation. With China and India serving as major economic anchors, BRICS is now positioned as a counterweight to Western-dominated systems—and the U.S. seems increasingly committed to pushing back.

What Comes Next?

The July 9 deadline for pausing certain existing tariffs is fast approaching, and Trump has shown little interest in softening his stance. If new tariffs are imposed, it would mark a clear escalation of the trade war, not just with BRICS nations, but also with long-time U.S. partners.

The broader implication is a fracturing of global trade frameworks. As more nations explore alternatives to U.S.-led economic norms, the risk of long-term geopolitical realignment increases. This is not just a trade dispute—it’s a struggle over the rules that will define global commerce in the 21st century.

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FAQ

What is the BRICS bloc and why is Trump targeting it?

BRICS is an economic coalition of emerging markets (Brazil, Russia, India, China, South Africa, and others) promoting multipolar economic governance. Trump sees its policies as undermining U.S. influence.

What are the new U.S. tariffs about?

Trump has threatened an additional 10% tariff on countries that align with BRICS’s policies. Other tariffs of up to 40% may hit countries like Japan and South Korea if deals aren’t reached.

Has BRICS responded officially?

Yes, the BRICS summit ended with a statement promoting global cooperation and rejecting unilateral economic measures. Leaders criticized Trump’s approach without directly naming the U.S.