US President Donald Trump threatened another 10% tariffs on countries that direct themselves in line with “BRICS’s anti-American policy.”
Trump’s announcement, which did not elaborate on BRICS’ specific policies, came as a group meeting is ongoing in Rio de Janeiro, Brazil.
Bloc leaders appear to be aiming for Trump’s drastic tariff policies in a joint statement on Sunday, warning against “unjust unilateral protectionist measures, including an increase in mutual tariffs.”
Without calling for the US, the leaders warned that “we have expressed serious concern over the rise of unilateral tariffs and non-concern measures that distort trade and conflict with WTO rules,” and that “the spread of trade restriction practices threatens to disrupt the global economy and exacerbate existing economic disparities.”
“Country in line with BRICS’s anti-American policies will be charged an additional 10% tariff, with no exceptions to this policy,” Trump said in the state’s post on a true social Sunday evening.
Trump may have been triggered by a joint statement from BRICS leaders who took a thinly veiled swipe in his tariff policy, said Stephen Olson, a former US trade negotiator and current visiting senior fellow at the Iseas-Yusof Ishak Institute.
The “anti-American” policy could make the president refer to “the desire expressed by BRICS members to move beyond the US-led world order in finance and global governance.”
This year’s BRICS Host Country Brazil did not respond to CNBC’s request for comment.
The developing world’s BRICS group provided symbolic support to Iranian colleagues who denounce a string of military strikes over the country without naming Israel or the US for carrying out military operations.
The bloc includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran. The group describes it as “a political and diplomatic adjustment forum for countries from the southern part of the world, a political and diplomatic adjustment for coordination in the most diverse fields.”
According to the Carnegie Fund for International Peace, BLOC aims to challenge the Western-controlled institutions of global economic governance and replace the role of the US dollar in the world economy.
This year, Chinese President Xi Jinping sent Prime Minister Li Qian to the BRICS conference in his absence, while Russian President Vladimir Putin attended online despite facing an arrest warrant from the International Criminal Court.
In response to Trump’s 10% extra obligation threat, a spokesman for the Chinese Foreign Ministry said in a regular reporting briefing on Monday that China opposed the action of using tariffs as “a tool to enforce others.”
“China is consistent in opposing the tariff war and the trade war,” the spokesperson said, adding that “arbitrarily criticising tariffs will not serve the interests of the parties.” This is according to CNBC’s translation of her comments on the Mandarin.
Separately, Trump confirmed that the US will begin streaming the letter on Monday, detailing the country’s inherent tariff rates and contracts with various trading partners. It supported Treasury Secretary Scott Bescent’s comments over the weekend.
The Trump administration has said tariffs announced in April will come into effect on August 1, not July 9, for countries that have not reached an agreement with the US.
Bessent rejected the idea that August 1 was yet another new tariff deadline. “We say this is when this is happening. If you want to speed things up, then you want to go back to the old rate you choose, then you have it,” Bescent said on CNN’s “Status of Union.”
In April, Trump announced a 90-day suspension of sudden tariffs announced several days ago at most trading partners. That suspension is expected to expire Wednesday, raising concerns between investors and US trading partners.
– CNBC’s Erin Doherty and Lim Hui Jie contributed to this story.
