In a bold statement that is bound to increase global tensions and trigger trade wars, the U.S. President Donald Trump has vowed to impose an additional 10% tariff on any country aligning itself with the policies of the BRICS bloc.
Trump on Monday issued a warning on Truth Social for BRICS member countries, saying that any nation that aligns itself with ‘anti-American’ policies of the bloc will face an additional tariff of 10%
Trump’s moves were triggered right after the BRICS 2025 summit in Brazil, where the 10 member states – Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russian Federation, South Africa, United Arab Emirates – condemned the American-Israeli strikes on Iranian nuclear and military facilities, referring to the attacks as “illegal.”
Furthermore, at the Brazil summit, the Indian Prime Minister Narendra Modi highlighted the double standard of US and west towards terror when it comes to attacks in the Global South.
Modi was scathing in his criticism of the UN Security Council, World Trade Organization (WTO) and multilateral development banks, saying they hadn’t been revamped in 80 years. Besides being a “victim of double standards”, he said, the Global South has received “nothing more than token gestures” in climate finance, sustainable development and technology access.
“Whether it is about development, distribution of resources or security-related issues, the interests of the Global South have not been prioritised, two-thirds of humanity is not adequately represented in global institutions built in the 20th century. Countries that make up the majority of today’s global economy are not at the decision-making table,” he said.
The joint declaration of BRICS also heavily criticised the “indiscriminate rising of tariffs”, and added that such measures threaten to undermine global trade and disrupt global supply chains, taking a direct shot at Donald Trump’s policies.
The summit communiqué described such tariffs as “illegal and arbitrary,” warning they could “further reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities.”
BRICS also strengthened its language for the ongoing war in the Gaza Strip as it expressed the Global South’s sentiment against unilateral military actions.
With a growing clash, BRICS is unlikely to retreat in the face of Trump’s warning. They are almost sure to accelerate intra-BRICS trade and alternative currency systems.
This will also allow them to attract more interest from the Global South, as Trump’s threat may be seen as proof of the West’s insecurity about BRICS’ rise. This may also lead to reinforcing BRICS ties with Europe, some of whom may also resist being forced into a U.S.-vs-BRICS binary.
Impact of this move
This move could accelerate the bifurcation of the global order — with Western democracies and BRICS nations solidifying into rival spheres. Rather than returning to global cooperation, the post-pandemic world may be entering a phase of economic tribalism.
It also puts intense pressure on middle-ground powers — such as Turkey, Indonesia, Argentina, and even some EU members — who may resist being forced into a binary geopolitical choice.
The potential consequences of Trump’s proposed tariffs are wide-ranging and could reshape international relations.
Countries may now be forced to choose between the U.S. and BRICS, risking a major split in global trade systems. This could slow economic growth worldwide, especially if retaliatory tariffs escalate into a wider trade war.
Rather than deter countries from joining BRICS, the threat could push more to seek economic independence from the U.S., especially in Africa,
Latin America, and Southeast Asia. The bloc may become even more attractive to nations seeking to escape the leverage of U.S. economic policy.
If enacted, many BRICS nations — particularly China and India — would likely retaliate with their own tariffs on U.S. exports. This could disrupt key industries, from agriculture to tech, harming American exporters and raising global issues.
If Trump’s tariffs push countries further toward trading in local currencies or developing a BRICS-backed currency, the long-term consequence could be a weakened global role for the U.S. dollar — with implications for borrowing costs, sanctions power, and economic stability in the U.S.
Tariffs on BRICS-aligned imports would likely also raise prices for American consumers, increase inflationary pressure, and provoke uncertainty in markets. While some domestic industries may benefit, the broader economy could face volatility — especially if global supply chains are further disrupted.
If Trump’s tariff policy becomes law, it may mark a clear and possibly irreversible pivot toward a fractured leading to a new multi polar world order, where global cooperation gives way to competing blocs and economic brinkmanship. However the BRICS vs USA is now becoming a prime rivalry with the bloc emerging as a direct rival which Trump’s moves shows he completely believe. The world trade will have to realign and restructure as the global clash is expected to grow.
