U.S. President Donald Trump has intensified his trade policy stance, announcing on July 7, 2025, that BRICS countries—Brazil, Russia, India, China, South Africa, and their newer members—could face an additional 10% tariff on exports to the United States. This move, reported by NBC New York, targets nations perceived as pursuing “anti-American policies” within the BRICS framework, escalating global trade tensions. Below, we break down the context, implications, and global reactions to this development.

Background: Trump’s Tariff Agenda

Since taking office in January 2025, Trump has doubled down on his “America First” trade policy, emphasizing tariffs to protect U.S. industries and boost federal revenue. In April 2025, he announced a baseline 10% tariff on all imports, with additional “reciprocal” tariffs of up to 50% for certain countries, set to take effect after a 90-day negotiation period ending July 9, 2025. The latest threat of an additional 10% tariff on BRICS nations builds on this framework, specifically targeting the bloc’s growing influence in global trade and finance.The BRICS summit, concluding in Rio de Janeiro on July 7, 2025, served as a flashpoint. Leaders from the bloc, which represents about 40% of global economic output and half the world’s population, condemned unilateral tariffs as “inconsistent with WTO rules” and disruptive to global supply chains, according to CNBC. Trump’s announcement appears to be a direct response to the summit’s discussions, particularly around reducing reliance on the U.S. dollar, a move he previously warned could trigger 100% tariffs.

Why BRICS?

The BRICS bloc has expanded in recent years, adding countries like Saudi Arabia, Iran, and Egypt, and is increasingly positioning itself as an alternative to Western-dominated economic systems. Trump’s focus on “anti-American policies” likely refers to initiatives like de-dollarization or trade agreements that bypass U.S. influence, though he has not specified which policies prompted the tariff threat.

The Tariff Threat: What We Know

Trump’s latest announcement, made on July 7, 2025, indicates that BRICS countries could face an additional 10% tariff on top of existing or planned levies, with new rates ranging from 10% to 70% set to take effect on August 1, 2025. Starting Monday, July 7, the U.S. will reportedly send letters to 12 unspecified countries outlining their tariff rates, as per Treasury Secretary Scott Bessent’s statements. While the exact targets remain unclear, the BRICS bloc is a primary focus.

How Tariffs Work:

Tariffs are taxes imposed on imported goods, increasing their cost in the U.S. market. This can make domestic products more competitive but often raises prices for consumers and disrupts supply chains. The proposed 10% hike would apply to goods from BRICS nations, potentially affecting everything from Chinese electronics to Brazilian agricultural products.

Previous Threats: I

n late 2024, Trump warned BRICS countries of 100% tariffs if they pursued a new currency to challenge the U.S. dollar’s dominance, a sentiment echoed in posts on X. The current 10% hike appears more targeted but aligns with his broader strategy of using tariffs as leverage in trade negotiations.

Global Reactions: BRICS and Beyond

The BRICS summit’s joint statement avoided naming the U.S. directly but criticized “indiscriminate” tariffs as illegal and harmful to global trade. Brazil, as host, emphasized internal cohesion and trade promotion within the bloc to mitigate tariff impacts. India’s Commerce Minister Piyush Goyal expressed caution, prioritizing national interests over rushed trade deals under U.S. deadlines.Other nations are also reacting:

• Vietnam, a BRICS partner, recently negotiated a deal reducing its tariff rate to 20% from a threatened 46%, showing the pressure to secure exemptions.
• Singapore, despite a free trade agreement with the U.S., faces a 10% levy, prompting its Prime Minister to call the move “unfriendly.”
• The European Union is seeking exemptions for sectors like pharmaceuticals and semiconductors but has made little progress in talks.

Economic and Political ImplicationsFor the U.S.:

Economists warn that tariffs could raise costs for American businesses and consumers. A JPMorganChase Institute analysis estimates that U.S. firms with revenues between $10 million and $1 billion could face $82.3 billion in direct costs. Goldman Sachs predicts that 60% of these costs may be passed to consumers, potentially fueling inflation and complicating the Federal Reserve’s monetary policy.

For BRICS Countries:

Higher tariffs could strain economies reliant on U.S. markets. For example, China’s electronics and India’s textiles could face higher costs, while Brazil’s agricultural exports may lose competitiveness. The bloc’s push for de-dollarization and alternative trade networks may accelerate as a countermeasure.

Global Trade:

The tariffs threaten to disrupt supply chains, particularly for industries like electronics, textiles, and furniture. Developing nations, already grappling with economic uncertainty, face heightened risks, as noted by BRICS leaders.

Legal Questions: A pending U.S. Court of International Trade ruling could challenge the legality of Trump’s tariff policies, adding uncertainty. If ruled unlawful, the administration may need to adjust its approach.

What’s Next?

With the 90-day negotiation period ending on July 9, 2025, the U.S. is poised to implement new tariffs starting August 1. Only a few countries, including the UK and Vietnam, have secured trade deals to mitigate impacts. The Treasury’s letters to 12 countries will clarify the scope of the tariffs, but the focus on BRICS suggests a broader geopolitical strategy.The BRICS bloc, meanwhile, is likely to deepen its efforts to reduce reliance on Western systems, potentially escalating tensions. As Trump stated, “Countries will start to pay on August 1,” signaling no retreat from his tariff agenda. The coming weeks will be critical as nations navigate negotiations, legal challenges, and the looming economic fallout.