Trump labels BRICS ‘anti-American'—renews 10% tariff warning

Indian Express

07-07-2025

In a fresh threat to the fast-growing BRICS coalition, which now includes 10 nations and was originally represented by Brazil, Russia, India, China, and South Africa, US President Donald Trump said in a social media post that any country aligning itself with the 'anti-American policies' of BRICS would face an additional 10 per cent tariff. Trump had threatened BRICS nations of a 100 per cent tariff 'if they so much as even think' about reducing the use of the dollar in global trade.
Ever since the US weaponised the global financial infrastructure by excluding Iran (in 2012) and Russia (in 2022) from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), countries around the world have sought to reduce their dependence on the US dollar and the US-led global financial system. Most notably, Russia and China began trading in domestic currency.
BRICS now accounts for 45 per cent of the global population and contributes over 35 per cent to the world's GDP. At their summit held in Kazan, Russia, in October 2024, the founding five members—Brazil, Russia, India, China, and South Africa—formally admitted Egypt, Ethiopia, Iran, and the United Arab Emirates as new members. Indonesia joined the grouping later in January 2025, bringing the total membership to ten.
In October 2024, External Affairs Minister S Jaishankar clarified that while US policies often complicate trade with certain countries, and India sought 'workarounds' in pursuit of its trade interests, it did not 'target' the dollar or seek to move away from it.
'We have never actively targeted the dollar. That's not part of our economic, political, or strategic policy. Some others may have done so. What I will say is that we have a natural concern. We often have trade partners who lack dollars for transactions. So, we must decide whether to forgo dealings with them or find alternative settlements that work. There's no malicious intent towards the dollar,' Jaishankar said in response to a question at the Carnegie Endowment for International Peace, an American think tank in Washington DC.
Following Western sanctions on Russia, including the freezing of $300 billion in Russian foreign holdings, the yuan has become Russia's most traded currency. According to the Russian government, more than 90 per cent of trade settlement between the two countries is now conducted in roubles.
Ajay Sahai, Director General & CEO of the Federation of Indian Export Organisations (FIEO), the country's top trade promotion body, told The Indian Express earlier that while supporting local currency initiatives, India should ensure the framework does not disproportionately favour China, given the asymmetry in economic power among BRICS nations.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More