BRICS Tariff Policy
US President Donald Trump’s BRICS tariff policy intensifies global trade tensions by targeting Brazil, Russia, India, China, and South Africa with steep levies. The move, aimed at deterring de-dollarization, threatens to trigger inflation and disrupt global supply chains.
Image: BRICS
Trump’s Aggressive Tariff Strategy
On April 2, 2025, President Donald Trump launched his “Liberation Day Tariffs,” directly targeting the founding members of the BRICS bloc—Brazil, Russia, India, China, and South Africa. He imposed a 145% tariff on China, 50% on Brazil, and 25% on India. Trump claims these measures are necessary to protect US economic interests and punish what he views as anti-American policies, particularly de-dollarization efforts.
However, critics argue that the move is more political than economic. Brazil’s President Luiz Inácio Lula da Silva labeled it “reckless,” while other BRICS leaders warned of rising instability. Trump’s strategy appears to focus on curbing challenges to the US dollar’s dominance, as countries in the bloc push for local currency trade alternatives.
Why Target BRICS?
BRICS, established in 2009, has consistently advocated for a multipolar world. In recent years, the bloc discussed ways to reduce dependency on the US dollar. For example, Brazil floated the idea of a BRICS currency in 2023, and China has encouraged renminbi-based trade.
Responding to these moves, Trump posted on Truth Social in January 2025, threatening 100% tariffs on any nation backing alternative currencies. Despite these provocations, BRICS leaders clarified they have no immediate plans for a common currency, opting instead to expand local currency trade. Still, the US government views even these small steps as a direct challenge to its financial dominance.
Economic and Political Fallout
Economists warn of severe repercussions from Trump’s actions. The Peterson Institute for International Economics projects a potential $432 billion decline in US GDP, alongside a 1.6% inflation rise.
China, heavily reliant on the US market, could face the largest losses. Meanwhile, Brazil’s 50% tariff seems politically charged due to its ties with former President Jair Bolsonaro. India’s 25% tariff stems from its continued purchase of Russian oil. As a result, these targeted measures risk prompting retaliatory tariffs and disrupting global trade systems.
In the long run, such disruptions could impact everyday consumers, increasing the cost of imported goods and worsening supply chain bottlenecks.
Global Reactions and Challenges
Global leaders have responded with strong opposition. Lula declared that the world “doesn’t need an emperor,” and South African President Cyril Ramaphosa advocated for multilateral trade solutions. China’s Foreign Ministry labeled the tariffs “coercive” and pushed for “win-win cooperation.”
At the July 2025 BRICS summit in Rio, the bloc issued a joint statement condemning unilateral tariffs. While they did not directly name the US, the message was clear. Notably, BRICS expansion—with countries like Egypt, Ethiopia, Iran, Indonesia, and the UAE joining—shows the bloc’s increasing influence, although internal divisions may limit cohesive responses.
Read More..- Nikki Haley Warns Trump: Don’t Strain US-India Ties Over Tariffs
What Lies Ahead?
Trump’s BRICS tariff policy highlights a deepening divide between the US and emerging economies. While the strategy might appeal to protectionist voters, it risks damaging the global economy and accelerating efforts to bypass the US dollar.
With only the UK and Vietnam securing initial trade deals, the future remains uncertain. As the situation develops, global stakeholders must carefully monitor both economic indicators and diplomatic responses to avoid a full-blown trade war.
