Trump Threatens BRICS and Allied Nations with Tariffs
US President Donald Trump announced his intention to impose additional tariffs on nations aligned with the BRICS bloc, which he accuses of promoting anti-American policies.
The threatened tariffs, which could be as high as 10 percent, are set to take effect pretty soon,
according to statements by the President.
Background and Context
BRICS, an economic bloc established in 2006, initially included Brazil, Russia, India, and China, and has since expanded to incorporate South Africa, Egypt, Iran, Ethiopia, the United Arab Emirates, and Indonesia. Trump's threat of imposing levies on BRICS nations and their allies furthers his ongoing criticism of the bloc and its economic policies.
Key Developments
President Trump has warned of a 10% tariff on BRICS nations, and an even steeper tariff on countries that refuse to concede to American trade demands. The proposed tariffs, according to Trump, are set to kick in shortly. However, there has been some confusion regarding the exact timeline, with some sources indicating a deadline of August 1, and others suggesting a less definitive timeline.
In addition to the 10% tariff on BRICS nations, Trump has also threatened to impose tariffs of 25-40 percent from August 1 on countries that do not make trade concessions. This threat extends to imposing tariffs of up to 200% on foreign drugs and 50% on copper.
Implications and Reactions
The US president's tariff threats have provoked a mixed response. Brazil's President Luiz Inácio Lula da Silva criticized Trump's move, stating that the world does not want an emperor
. Lula's government further believes that these threats only strengthen BRICS' position against unilateral measures in international trade, such as the tariffs imposed by the US.
Many analysts, including Boris Kopeikin, argue that it is impossible to halt the rise of BRICS and other countries through administrative measures such as trade restrictions or sanctions. Meanwhile, some countries like Serbia see potential economic benefits in aligning with BRICS as an alternative to the EU.
Conclusion
Despite the uncertainty surrounding the timeline for these tariffs, Trump has insisted that no extensions will be granted
beyond August 1. As the deadline approaches, the US has reportedly begun reaching out to its trade partners with new tariff rates and deals. This move could lead to escalating tensions between the US and nations aligned with BRICS, further complicating international trade relations.