Rio de Janeiro, July 7, 2025 — U.S. President Donald Trump issued a sharp warning today amid the 17th BRICS Summit in Brazil, declaring that any country aligning with what he termed “anti‑American policies” from the BRICS bloc would face an additional 10% tariff on exports to the U.S., with “no exceptions.” The announcement came through a post on his Truth Social platform.
What Trump Said
- “Any Country aligning itself with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!”
- He provided no further clarity on what qualifies as “anti‑American policies.”
Context: BRICS Summit & Growing Tensions
- The 17th BRICS Summit is underway in Rio de Janeiro, attended by leaders including Prime Minister Narendra Modi of India.
- Earlier in the summit, BRICS nations condemned military actions in Iran and criticised unilateral tariffs, widely viewed as aimed at U.S. policy.
Tariff Timeline & Related Measures
- Trump’s statement comes as the U.S. enters a new phase in its tariff strategy. A 90‑day pause on certain tariffs introduced in April is nearing its end, with August 1 set as the reinstatement date for elevated duties.
- In addition to the 10% base tariffs, extra duties of up to 50–70% may be applied to non-compliant trading partners, with “anti‑American alignment” now carrying an additional 10% hit.
Diplomatic & Economic Implications
- U.S. allies like the EU, Japan, and South Korea are still navigating trade negotiations, uncertain if they’ll avoid or face these surcharges.
- Treasury Secretary Scott Bessent confirmed forthcoming tariff notices to up to 100 trading partners, underscoring pressure to finalise trade deals by July 9, or see consequences by August 1.
India’s Position: Caught in the Middle
- India’s PM Modi, present at the summit, has advocated BRICS as a multilateral force for the Global South and inclusive growth.
- India is also reportedly close to clinching a mini trade deal with the U.S., which could be pivotal in avoiding punitive tariffs.
Geopolitical Fallout
- The tariff warning is viewed by analysts as a countermeasures tactic—linking global alignment with BRICS to tangible economic penalties.
- The BRICS declaration, which condemns unilateral tariffs and military actions, has notably omitted direct mention of the U.S.—yet the message is clear: the group is staking a claim in shaping the multi-polar order.
What Happens Next?
| Date | Event |
|---|---|
| July 9 | Upcoming deadline for trade agreements to avoid increased tariffs |
| August 1 | Reinstatement of stepped-up tariff regime, including the new +10% for BRICS alignment |
| Ongoing | U.S. letters to affected countries expected this week |
Bottom Line
Trump’s blunt tariff threat marks a significant escalation in U.S.–BRICS tensions, merging trade retaliation with foreign policy messaging. With key players like India balancing summit diplomacy and negotiations in Washington, the coming weeks will be critical. Should trade agreements falter, countries may soon incur not just standard duties, but a steep, politically motivated surcharge.
