Trump's Opposition to BRICS: Potential Tariffs for Member Countries
In the bustling city of Rio de Janeiro, the Brics summit is underway, with leaders from Brazil, Russia, India, China, and South Africa, along with Egypt, Ethiopia, Indonesia, Iran, the United Arab Emirates, and Saudi Arabia (although the latter has not yet formally joined the group) gathered to discuss global economic issues.
Brazilian President Luiz Inacio Lula da Silva opened the summit by positioning the Brics group as a bastion of multilateral diplomacy, echoing Lula's remarks last November that the international situation has deteriorated so much that some of the initiatives agreed upon during the G-20 summit held in the same location are no longer possible today.
One of the key topics of discussion is the US President Donald Trump's trade policy, which has been met with strong criticism and concern by the Brics countries. They view the US tariffs as a threat to global trade stability, with Russia, a founding member of the Brics group, and Iran being particularly vocal in their opposition.
US President Trump has labeled Brics policies as "anti-American" and has renewed threats to impose additional tariffs of 10% on any country supporting Brics’ stance against the US. Earlier, Trump had also warned of a 100% tariff on Brics members if they attempt to reduce reliance on the US dollar or adopt a new currency for international trade.
However, Brics members have made it clear that they do not seek to replace the US dollar outright but aim to provide alternatives and reduce dependency over time. This reflects their broader strategy to mitigate vulnerability to US financial sanctions and maintain more autonomy in global economic affairs.
The additional tariffs threaten to escalate trade tensions and could negatively impact countries within the Brics bloc by increasing costs and disrupting trade flows. Yet, the Brics coalition sees this pressure as reinforcing the importance of their summit discussions and cooperation to counterbalance US economic dominance and protect their collective interests.
The Brics countries collectively represent more than half of the world’s population and over 35% of global GDP, making their response significant on the world stage. The recent addition of Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates to the Brics group further strengthens this influence.
Meanwhile, no breakthrough was reported in the recent talks between the USA and EU on trade issues, adding to the sense of global economic uncertainty. The Brics summit, therefore, serves as a counterweight to the G7, which includes the seven most influential Western industrialized countries, providing a platform for developing economies to assert their voice in global economic discussions.
The joint statement issued by the Brics group at their two-day summit in Rio de Janeiro warns of the dangers of tariffs on global trade and is seen as a criticism of the US "America First" trade policy. The Brics countries reject Trump's tariffs and threats as harmful to global trade and are actively seeking to strengthen their economic independence and intra-group collaboration as a response to the potential imposition of additional US tariffs.
- The Brics countries, gathered at their summit in Rio de Janeiro, have highlighted their employment policies as a means to reduce dependency on the US dollar and mitigate vulnerability to US financial sanctions, aiming for more autonomy in global economic affairs.
- Amidst the escalating trade tensions with the US President Donald Trump, the Brics group has condemned the US tariffs on global trade as harmful to business and general-news, reiterating their commitment to multilateral diplomacy and building a strong community policy to counterbalance US economic dominance.
