U.S. President Donald Trump announced a 10% tariff on nations supporting BRICS’ so-called ‘anti-American policies.’ What does this mean for global trade, U.S. allies, and countries like India? Explore all angles here.
A New Chapter in Trump’s Trade Policy
On July 6, 2025, President Donald Trump once again rattled global markets with a surprise announcement: any country that aligns itself with what he called the “anti-American policies” of the BRICS alliance will now be subject to an additional 10% tariff. The statement, posted on his Truth Social platform, was short, sharp, and delivered with his signature no-nonsense tone.
“Any Country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” – President Donald J. Trump
The announcement has sparked fresh concerns among U.S. trading partners and global economic analysts, with many scrambling to understand its full scope and potential consequences.
Donald J. Trump Truth Social 07.06.25 10:24 PM EST
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) July 7, 2025
Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!
What Is BRICS and Why Is Trump Targeting It?
The BRICS group initially emerged in 2009 as a bloc of major emerging economies—Brazil, Russia, India, China, and later, South Africa. In 2024, BRICS expanded further to include Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates.
The alliance, while economic in nature, has increasingly taken on a geopolitical character, often challenging the dominance of Western institutions like the International Monetary Fund (IMF) and the World Bank. The group promotes a multipolar world order, which many U.S. officials view as being in direct opposition to American global interests.
Trump’s statement comes at a time when BRICS has accelerated efforts to create alternative financial systems, including a proposed common currency and new trade frameworks that bypass the U.S. dollar.
Anti-American Policies: What Did Trump Mean?
While President Trump did not go into specifics, experts believe his reference to “anti-American policies” includes:
- BRICS push for de-dollarization
- Increasing energy trade in non-USD currencies
- Military and technology cooperation among BRICS members
- Support for U.S. rivals such as Russia and Iran
- Criticism of U.S. sanctions and interventionist policies
In previous BRICS summits, leaders have collectively denounced Western sanctions and supported parallel financial structures, such as the New Development Bank (NDB), to reduce dependence on U.S.-dominated institutions.
Trump’s Global Tariff Strategy: A Trade War Renewed?
This isn’t Trump’s first time using tariffs as a weapon in his foreign policy toolkit. During his first presidency, he slapped duties on steel, aluminum, and various imports from China, Europe, and even Canada.
But this time, the move is more strategic and politically driven, aimed at nations that diplomatically lean toward BRICS or challenge U.S. leadership.
“Trump is building an economic wall—not just at the border, but around nations that don’t play by his rules,” said former USTR official Mark Johnson.
Letters to Be Sent to Affected Nations
Adding urgency to the announcement, Trump declared that official tariff letters and deal notifications would begin going out on Monday, July 7, 2025, at 12:00 PM (Eastern).
“I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 PM (Eastern), Monday, July 7th.” – Trump on Truth Social
This move signals a coordinated and actionable policy, not just a social media outburst. It puts dozens of countries—especially those with growing BRICS ties—on notice.
Potential Countries in the Crosshairs
While the list of affected countries wasn’t explicitly released, it’s expected to include:
- India – Despite close U.S. ties, its role in BRICS complicates matters.
- Brazil – A founding member of BRICS and a key voice in alternative trade frameworks.
- Saudi Arabia & UAE – Major oil exporters now engaging with BRICS energy initiatives.
- Indonesia & Egypt – Recent BRICS additions that maintain dual allegiances.
- Iran & Russia – Already under U.S. sanctions; further tariffs would be symbolic.
This wide net could impact both adversaries and long-time allies, depending on their future diplomatic alignments.
What This Means for India
India finds itself in a unique and delicate position. While being a core member of BRICS, it is also deepening ties with the United States through strategic defense agreements, technology partnerships, and trade negotiations.
U.S.-India Trade Deal in the Final Stages
According to Indian government sources, talks with the Trump administration are nearing conclusion. No further negotiation rounds are expected, and both sides appear optimistic about a “fair” deal.
India has made it clear that while it seeks to open up key sectors to U.S. investments, it will not compromise on core domestic interests, particularly in agriculture (rice, wheat, dairy), and tariffs on steel and automobiles.
Yet, Trump’s latest stance could complicate the final signing.
“India is walking a tightrope. If it aligns too closely with BRICS on currency or energy, it may face U.S. tariffs. But if it pulls back, it may lose regional influence,” said trade policy analyst Ananya Chatterjee.
July 9 Deadline: 90-Day Suspension Period Ends
Adding to the urgency is the expiration of the 90-day tariff suspension initiated in April 2025. This measure currently affects dozens of nations, including India, which were granted temporary relief from up to 26% additional duties.
As of July 9, 2025, these tariffs could come back into full force unless formal agreements are reached. Trump has already warned that “no deal means new tariffs”.
Global Reaction: Concern, Confusion, and Calculations
The global reaction has been mixed:
- European Union officials called the measure “short-sighted and harmful.”
- China issued a veiled statement through state media, calling it a “misguided attempt at economic coercion.”
- Saudi Arabia and UAE remained silent, perhaps to assess the direct impact on their energy exports.
- India, as of now, has not issued an official response.
Business & Market Impact
Wall Street and global markets saw immediate dips in futures trading Sunday evening, especially in:
- Energy stocks (due to oil tariffs concerns)
- Emerging market funds
- Multinational companies with global supply chains (e.g., Apple, GM, Amazon)
Tariff uncertainty also drove a temporary strengthening of the U.S. dollar, although analysts expect volatility to increase as countries respond.
What’s Next for U.S. Trade Policy?
With Trump’s potential re-election in November, this latest tariff warning may signal the beginning of a broader economic doctrine centered around:
- Bilateral trade deals
- Tariff threats as negotiation levers
- Dismantling multilateral blocs that challenge U.S. dominance
- An “America First 2.0” strategy rooted in economic nationalism
If implemented in full, this policy could redefine global trade rules, realign alliances, and put U.S. corporations in a reactive posture for years to come.
BRICS vs. Trump—A Global Clash of Visions
President Trump’s 10% tariff warning is more than a tweet—it’s a policy signal with far-reaching implications. It challenges the growing influence of BRICS while reaffirming Trump’s hardline trade stance.
As BRICS nations attempt to reshape global order, and Trump seeks to punish disloyalty with economic might, the world may be entering a new phase of geopolitical-economic competition.
Countries like India, Brazil, and Saudi Arabia now face tough decisions—choose economic alignment with BRICS or risk facing the wrath of U.S. tariffs.
One thing is certain: the next few weeks will be pivotal in shaping the future of global trade diplomacy.
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