Trump threatens extra 10% tariffs on BRICS nations for anti-American policies, escalating global trade tensions

Key topics:Trump threatens tariffs on countries supporting BRICS anti-US policiesBRICS leaders call for global financial reform at Rio summitUS trade strategy aims to reassert economic dominance globallySign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.US President Donald Trump has escalated his administration’s trade war rhetoric by warning that any country aligning with BRICS policies deemed anti-American will face an additional 10% tariff, with no exceptions. This follows Trump’s long-standing criticism of BRICS, a bloc originally comprising Brazil, Russia, India, China, and South Africa - now expanded to include nations like Saudi Arabia, Iran, and the UAE.The latest move comes ahead of a revised US trade deadline. While an initial tariff deal deadline had been set for 9 July, the Trump administration has confirmed that new tariffs will be enforced starting 1 August. Commerce Secretary Howard Lutnick confirmed the implementation date. At the same time, Treasury Secretary Scott Bessent warned that countries failing to reach agreements by then would revert to higher tariff levels set on 2 April.So far, the US has signed trade deals only with the UK and Vietnam, and even those remain unresolved in areas like UK steel tariffs. Since assuming office in January, Trump has introduced a raft of import taxes, claiming these measures protect American jobs and strengthen domestic manufacturing. In April, on what he dubbed "Liberation Day", Trump unveiled sweeping tariffs on a range of foreign goods, only to suspend them temporarily for negotiations.The renewed tariff threat coincides with a BRICS summit in Rio de Janeiro, where leaders pushed for global financial reform and condemned US trade policies. The bloc's finance ministers issued a joint statement criticising unilateral tariffs for increasing global economic uncertainty. They also called for changes to the International Monetary Fund and the international currency valuation system.China’s President Xi Jinping was absent from the summit - his first no-show - with Premier Li Qiang attending instead. Russian President Vladimir Putin, who was wanted by the International Criminal Court, participated virtually. Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa were present in person.Now representing over half of the world’s population, the BRICS nations continue to challenge US dominance in global trade and finance. Trump’s latest tariff threat follows his 2024 warning of 100% tariffs on BRICS members if they pursued a rival currency to the US dollar.The economic fallout of such tariffs remains contentious. Andrew Wilson of the International Chamber of Commerce noted the difficulty of disengaging from trade with China, especially in critical sectors like electric vehicles and rare earth materials, where China maintains global dominance.Tensions were further inflamed by US-Israeli military strikes on Iran in June, which BRICS leaders condemned as violations of international law. As the geopolitical divide deepens, Trump's aggressive trade stance underscores a broader strategy to reassert American economic power, regardless of growing international opposition.(This article is a précis of a piece originally published in BBC and can be read in full here.)

Trump threatens extra 10% tariffs on BRICS nations for anti-American policies, escalating global trade tensions

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