Tariff Tensions: U.S. Holds Fire on Immediate 10% Tariff for BRICS, Sets Clear Red Line

Image Source: Economic Times

Key Developments

•⁠ ⁠The Trump administration has decided not to immediately impose a new 10% tariff on BRICS member nations, but reserves the right to do so if any country within the bloc adopts policies it deems "anti-American" .

•⁠ ⁠President Trump’s warning, delivered via Truth Social late Sunday, comes as the U.S. prepares to end a 90-day tariff pause and finalize trade deals with several countries, including India and Indonesia, ahead of a July 9 deadline .

What Triggered the Threat?

•⁠ ⁠The announcement follows a BRICS summit in Rio de Janeiro, where member states—now expanded to 11, including Saudi Arabia, UAE, and Ethiopia—criticized U.S. and Israeli actions in Iran and called for troop withdrawals from Gaza .

•⁠ ⁠BRICS leaders also advocated for reforms in global financial institutions and discussed alternatives to the U.S. dollar in trade, moves Washington perceives as undermining American interests .

U.S. Position and Conditionality

•⁠ ⁠According to a senior source, the U.S. will only activate the additional tariff if BRICS nations take concrete steps considered hostile to U.S. interests. The administration is drawing a clear line: policy actions, not mere membership, will trigger penalties .

•⁠ ⁠Letters detailing tariff rates and agreements are being sent out to trading partners, but for now, BRICS nations have a window to avoid the new tariff by refraining from "anti-American" policy moves .

International Response

•⁠ ⁠BRICS members have rejected the "anti-American" label, emphasizing that their cooperation is not aimed at any specific country and calling for fairer global governance .

•⁠ ⁠South Africa and China have publicly criticized the U.S. approach, with diplomatic channels remaining open for negotiation .

What’s Next?

•⁠ ⁠The situation remains fluid, with trade talks ongoing and the U.S. holding the tariff threat in reserve. The outcome will depend on the policy choices made by individual BRICS nations in the coming weeks .

Sources: Economic Times, NDTV, Times of India, NBC News