What's happened
On July 7, 2025, President Donald Trump announced a 10% additional tariff on any country aligning with the 'Anti-American policies of BRICS,' escalating tensions after the BRICS summit in Rio de Janeiro. The bloc criticized unilateral tariffs and condemned military strikes on Iran. China and Brazil emphasized multilateralism, while Indonesia and Nigeria face pressure balancing trade and geopolitical interests.
What's behind the headline?
Geopolitical and Economic Realignment
The US tariff threat against BRICS-aligned countries marks a significant escalation in the contest for global economic influence. By linking tariffs to geopolitical alignment, the US is weaponizing trade policy to maintain its hegemony and deter emerging economies from pursuing independent financial architectures.
BRICS' Strategic Positioning
BRICS is evolving beyond a loose coalition into a multipolar bloc with financial institutions like the New Development Bank and plans for a cross-border payment system outside the US-dominated SWIFT network. This challenges the dollar's dominance and US-led institutions like the IMF and World Bank.
Impact on Member and Partner States
Countries like Indonesia and Nigeria face acute dilemmas: aligning with BRICS offers long-term geopolitical leverage and economic diversification but risks immediate punitive tariffs from the US. Indonesia's potential energy investments by Chevron illustrate the complex interplay of economic interests and geopolitical pressures.
Diplomatic Nuance and Risks
China's diplomatic response underscores a commitment to multilateralism and warns against trade wars, reflecting a strategic effort to avoid direct confrontation while advancing BRICS' agenda. However, Trump's blunt tariff threats risk deepening global economic fragmentation and disrupting supply chains.
Forecast
The US will likely continue using tariffs as leverage to influence emerging economies' alignments, while BRICS will push for institutional reforms and alternative financial mechanisms. This dynamic will intensify global economic polarization, forcing countries in the Global South to navigate between economic pragmatism and geopolitical autonomy.
What the papers say
South China Morning Post highlights the broad strategic challenge BRICS poses to US dominance, noting Trump's tariff threats and Indonesia's difficult position balancing trade and geopolitics. The article details China's diplomatic stance emphasizing multilateralism and cooperation.
Al Jazeera reports on Trump's tariff announcement and BRICS' joint statement condemning unilateral tariffs and military strikes on Iran, with leaders urging peaceful resolutions. It also notes internal BRICS divisions and the absence of key leaders like Xi Jinping and Putin at the summit.
Business Insider UK provides context on BRICS' expansion and Trump's tariff threats, quoting economists skeptical of BRICS' coherence but acknowledging the group's efforts to reduce dollar reliance and develop alternative payment systems.
The NY Post, quoting Stephen Olson, frames Trump's tariff threat as a reaction to BRICS' desire to move beyond US-led global governance, highlighting the ambiguity around what constitutes 'alignment' with BRICS' policies. It also covers China's opposition to tariff wars.
All Africa focuses on Nigeria's inclusion as a BRICS partner country and the caution urged by economic experts to handle US tariff threats diplomatically, emphasizing President Tinubu's commitment to BRICS and calls for global governance reform.
Gulf News briefly reports Trump's tariff threat and BRICS' ongoing talks on cross-border payment systems, noting the group's expanded membership and Trump's previous threats related to de-dollarization.
Together, these sources provide a multifaceted view of escalating US-BRICS tensions, the strategic ambitions of emerging economies, and the complex trade-offs faced by member and partner countries.
How we got here
BRICS, originally Brazil, Russia, India, China, and South Africa, expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE, aiming to challenge Western-led global governance. The US, under Trump, has imposed tariffs to counter BRICS' moves toward de-dollarization and alternative trade systems, heightening trade tensions amid ongoing global economic shifts.
Go deeper
- What are the specific 'Anti-American policies' Trump refers to?
- How is BRICS planning to reduce reliance on the US dollar?
- What are the economic risks for Indonesia and Nigeria amid these tariffs?
Common question
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Why Is the US Threatening Tariffs on BRICS Countries?
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More on these topics
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BRICS is the acronym coined to associate five major emerging economies: Brazil, Russia, India, China, and South Africa. The BRICS members are known for their significant influence on regional affairs.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Brazil, officially the Federative Republic of Brazil, is the largest country in both South America and Latin America. At 8.5 million square kilometers and with over 211 million people, Brazil is the world's fifth-largest country by area and the sixth most
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Iran, also called Persia, and officially the Islamic Republic of Iran, is a country in Western Asia. It is bordered to the northwest by Armenia and Azerbaijan, to the north by the Caspian Sea, to the northeast by Turkmenistan, to the east by Afghanistan a
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Luiz Inácio Lula da Silva, known as Lula, is a Brazilian politician and former union leader who served as the 35th President of Brazil from 1 January 2003 to 31 December 2010.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Li Qiang is a Chinese politician and a member of the Politburo of the Communist Party of China. He is the current Party Committee Secretary of Shanghai, and formerly served as Governor of Zhejiang and Party Secretary of Jiangsu.
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Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's in
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South Africa, officially the Republic of South Africa, is the southernmost country in Africa. With over 59 million people, it is the world's 24th-most populous nation and covers an area of 1,221,037 square kilometres.
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Narendra Damodardas Modi is an Indian politician serving as the 14th and current Prime Minister of India since 2014. He was the Chief Minister of Gujarat from 2001 to 2014, and is the Member of Parliament for Varanasi.
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India, officially the Republic of India, is a country in South Asia. It is the second-most populous country, the seventh-largest country by land area, and the most populous democracy in the world.