Punishment By Tariff: How Trump's Trade Crackdown Is Hitting BRICS Nations

News18

18 hours ago

Trump's rhetoric stresses high tariffs for nations that do not comply with his expectations, particularly BRICS, which he has labelled as pursuing 'anti-American policies'
With Donald Trump's 'America First" policy, several countries are learning what happens when they don't align with US policy priorities. Instead of traditional military pressure or diplomatic isolation, Trump relies heavily on economic tools — tariffs, sanctions, and unilateral executive actions — to compel compliance.
Trump has used tariffs as a tool to address perceived economic imbalances and geopolitical concerns, particularly focusing on countries like Brazil, India, and Russia, which are part of the BRICS bloc (Brazil, Russia, India, China, South Africa, and others).
As Brazil, India, and Russia navigate US trade and foreign policy, let's examine what happens when world leaders do not align with Trump's directives and how he responds with punitive measures.
What's Trump's Approach To Global Trade?
Since returning to office in January, Trump has implemented a sweeping tariff regime to reduce the US trade deficit and promote domestic manufacturing. His administration views tariffs as both an economic and political tool, targeting countries perceived as engaging in unfair trade practices or aligning with policies contrary to US interests.
The BRICS bloc, representing over half the world's population and 40% of its economic output, is a significant target due to its growing influence as an alternative to Western-led economic systems.
Trump's strategy involves imposing tariffs—ranging from 10% to 50%—and unspecified 'penalties" on countries that fail to meet his demands, such as reducing trade barriers, altering energy purchasing patterns, or aligning with US geopolitical goals.
These measures are often accompanied by public statements that highlight trade deficits, national security concerns, or support for specific foreign political figures.
Brazil: Tariffs Tied To Political Motives
Brazil, under President Luiz Inácio Lula da Silva, has faced significant pressure from Trump, particularly through a 50% tariff on Brazilian goods announced in July, set to take effect on August 1. This tariff, an escalation from an earlier 10% levy, appears tied to both economic and political objectives. Trump has accused Brazil of 'insidious attacks" on US tech companies and conducting a 'witch hunt" against former Brazilian President Jair Bolsonaro, a political ally facing trial for an alleged coup attempt following the 2022 election. Trump's letter to Brazil suggested the tariffs were meant to 'rectify the grave injustices of the current regime," indicating support for Bolsonaro.
The 50% tariff is notable because the US enjoys a trade surplus with Brazil, making it an unusual target for Trump's protectionist policies, which typically focus on countries with which the US has a trade deficit.
US-Brazil trade was an estimated $92.0 billion in 2024, with US exports to Brazil standing at $49.7 billion, up 11.3% ($5.0 billion) from 2023.
Additionally, Trump has threatened a Section 301 investigation into Brazil's digital trade practices, signalling a potential escalation through established legal channels. This move follows Brazil's Supreme Court rulings holding social media companies accountable for content, including temporary bans on platforms like X for refusing to remove accounts spreading disinformation.
What's Brazil's Response?
Lula has responded defiantly, framing the tariffs as an attack on Brazil's sovereignty. In a CNN interview, he stated, 'We cannot have President Trump forgetting that he was elected to govern the US… not to be emperor of the world." Lula has capitalised on the tariffs to bolster his domestic support, appearing at rallies with a cap reading 'Brazil belongs to the Brazilians," echoing nationalist sentiments. This has given Lula a political boost, with polls showing increased approval as he positions himself as a defender of Brazilian autonomy against foreign interference.
Brazil's government has signalled it may retaliate with reciprocal tariffs on US goods, though analysts question whether Brazil has the economic leverage to sustain a prolonged trade war.
Analysts suggest that Trump's actions may inadvertently push Brazil closer to Beijing, as China stands to benefit from strained US-Brazil relations.
Public reaction in Brazil has been marked by protests, including a demonstration in São Paulo where an effigy of Trump was burned, reflecting widespread anger over perceived US meddling. Lula's administration has resisted calls to grant Bolsonaro amnesty, with Brazilian Supreme Court Justice Alexandre de Moraes issuing punitive orders against him, including an ankle bracelet mandate, underscoring Brazil's commitment to its judicial process despite US pressure.
How Is India Balancing Trade & Geopolitics?
India faces a 25% tariff on its goods announced by Trump on July 30, effective August 1, along with an unspecified 'penalty" for its trade with Russia, particularly for purchasing Russian energy and military equipment. Trump has slammed India for having some of the world's highest tariffs and 'obnoxious" non-monetary trade barriers, as well as for being a major buyer of Russian oil and gas at a time when he seeks a ceasefire in Ukraine.
The tariff is slightly lower than the 26% rate imposed earlier on 'Liberation Day," but the additional penalty remains undefined, creating uncertainty.
US trade with India was estimated at $129.2 billion last year. US goods exports to India stood at $41.8 billion, up 3.4% ($1.4 billion) from 2023.
India's position within BRICS complicates its response. Unlike other members, India maintains close ties with the US through the QUAD (US, India, Japan, Australia) while also participating in China's Shanghai Cooperation Organization. This nonaligned stance allows India to navigate tensions between the US and China, but Trump's tariffs put New Delhi in a delicate position, as alienating BRICS partners or the US could have economic and political repercussions.
What's India's Response?
The Ministry of Commerce and Industry has stated it is 'studying" the implications of Trump's tariffs while remaining committed to negotiating a 'fair, balanced, and mutually beneficial" trade agreement with the US Indian trade delegations are actively working in Washington to secure exemptions or reductions in tariffs, aiming to maintain competitive advantages against China.
India's economic strategy includes diversifying trade partnerships within BRICS and beyond, while continuing to purchase Russian energy, which is critical for its economy. The country's non-alignment policy allows it to engage with both Western and non-Western blocs, but analysts note that India is wary of being seen as a 'Trojan horse" within BRICS due to its US ties.
Russia Faces Secondary Tariffs
Russia, under President Vladimir Putin, has been targeted with threats of 100% secondary tariffs on countries purchasing its oil and gas, announced in early July, unless a ceasefire is reached in Ukraine. These tariffs indirectly affect BRICS nations like India and Brazil, which rely on Russian energy, but Russia itself faces significant pressure due to its role in the Ukraine conflict.
Trump's rhetoric stresses stopping 'the killing in Ukraine," tying economic penalties to geopolitical demands.
What Has Been Russia's Response?
Russia has not directly addressed Trump's tariff threats in the provided context, but its participation in the BRICS summit in Brazil in July indicates a strategy of strengthening economic ties with other Global South nations to counter US pressure.
Foreign Minister Sergei Lavrov's presence at the summit, alongside leaders from Brazil, India, and China, underscores Russia's focus on multilateralism through BRICS. The bloc's joint statement avoided direct criticism of Russia's actions in Ukraine, suggesting a unified front against Western sanctions and tariffs.
Russia continues to supply energy to countries like India and China, leveraging these relationships to mitigate the impact of US tariffs. The BRICS summit's call for a Multilateral Guarantees initiative within the New Development Bank aims to lower financing costs for member states, providing an alternative to Western financial systems.
Last year, US total goods trade with Russia were an estimated at $3.5 billion, with exports to Moscow touching $526.1 million, down 12.3% ($73.5 million) from 2023. US goods imports from Russia totalled $3 billion in 2024, down 34.2% ($1.6 billion) from 2023.
What Are The Broader Implications Of Trump's Tariffs?
The responses of Brazil, India, and Russia highlight a broader trend: while Trump's tariffs and penalties aim to compel compliance, they often strengthen nationalist sentiments and push countries towards alternative alliances, particularly with China.
Brazil's defiance, India's diplomatic balancing act, and Russia's reliance on BRICS solidarity illustrate varied strategies to navigate US pressure. These nations are leveraging multilateral platforms, domestic political narratives, and trade negotiations to mitigate economic impacts while asserting sovereignty.
The long-term effects of Trump's policies remain uncertain. While they may achieve short-term concessions, they risk alienating key partners and accelerating the Global South's shift towards China-led economic frameworks.
For now, Brazil, India, and Russia are adapting through a mix of resistance, negotiation, and strategic realignment, ensuring they maintain autonomy in a turbulent global trade environment.
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About the Author
Shilpy Bisht
Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her prev...Read More
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BRICS india russia deal India US trade russia oil
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New Delhi, India, India
First Published:
July 31, 2025, 10:52 IST
News explainers Punishment By Tariff: How Trump's Trade Crackdown Is Hitting BRICS Nations
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