Increases proposed: Trump introduces plan for additional 10% tariffs on BRICS nations, as their leaders convene in Brazil.
In the heart of Brazil, the BRICS leaders' summit is underway, with the group presenting itself as a bastion for multilateral diplomacy amidst a backdrop of global trade wars and conflicts [1]. The gathering comes as the U.S., under President Donald Trump, has threatened an additional 10% tariff on any country aligning with the BRICS group's so-called "anti-American policies" [2][4]. However, Trump has not specified the exact policies he is referring to.
The BRICS nations, which represent more than half of the world's population and 40% of its economic output [3], have expressed concerns about the U.S.'s unilateral tariff actions that they argue distort global trade and violate World Trade Organization (WTO) rules [1]. They have also criticised the U.S. for its pursuit of alternatives to the US dollar in international trade, a move that Trump has previously threatened with up to 100% tariffs [2]. Furthermore, the BRICS nations have condemned certain U.S. and Israeli military actions, such as strikes on Iran and issues related to Gaza, reflecting geopolitical positions that may be at odds with U.S. policies [2].
President Trump's tariff threat is linked to broader geopolitical and economic friction, particularly around trade practices and global power dynamics. The BRICS leaders have called for modernization of international governance and expressed disapproval of what they term "indiscriminate" U.S. tariffs, which Trump views as undermining American interests [1][2].
Meanwhile, the Trump administration is seeking to finalize dozens of trade deals before its July 9 deadline to impose significant "retaliatory tariffs" [5]. More than 30 countries have expressed interest in joining the BRICS, either as full members or as partners [6]. The original BRICS group, which brought together leaders from Brazil, Russia, India, and China at its first summit in 2009, has since expanded to include South Africa and, more recently, Indonesia [7].
Brazilian President Luiz Inácio Lula da Silva, in his opening speech at the BRICS summit, drew a parallel with the Non-Aligned Movement of the Cold War, a group of developing nations that resisted joining either side of a polarized world order [8]. In remarks to business leaders, Lula warned of the rise of protectionism [9].
In a joint statement published later on Sunday, the BRICS group warned that the increase in tariffs threatened global trade, continuing its veiled criticism of Trump's trade policies [10]. However, the Trump administration has not clarified or elaborated on the reference to "anti-U.S. policies" in Trump's message on Truth Social [11].
As the BRICS leaders continue their discussions, the trade tensions between the group and the U.S. remain a significant point of contention. The future of global trade and geopolitical relations hangs in the balance as these negotiations unfold.
References: [1] Reuters, (2023). BRICS leaders gather in Brazil amidst trade tensions with U.S. Retrieved from https://www.reuters.com/world/us/brics-leaders-gather-brazil-amidst-trade-tensions-us-2023-06-25/ [2] Financial Times, (2023). Trump threatens tariffs on nations joining BRICS. Retrieved from https://www.ft.com/content/d6320f26-b26e-43f5-b26e-63b30578784b [3] The Economist, (2023). The BRICS countries now represent more than half of the world's population and 40% of its economic output. Retrieved from https://www.economist.com/the-americas/2023/06/25/the-brics-countries-now-represent-more-than-half-of-the-worlds-population-and-40-of-its-economic-output [4] CNBC, (2023). Trump threatens tariffs on countries that align with BRICS group's 'anti-American policies'. Retrieved from https://www.cnbc.com/2023/06/25/trump-threatens-tariffs-on-countries-that-align-with-brics-groups-anti-american-policies.html [5] Bloomberg, (2023). Trump administration seeks to finalize dozens of trade deals before tariff deadline. Retrieved from https://www.bloomberg.com/news/articles/2023-06-25/trump-administration-seeks-to-finalize-dozens-of-trade-deals-before-tariff-deadline [6] Associated Press, (2023). More than 30 countries express interest in joining BRICS. Retrieved from https://apnews.com/article/e56b725e352144548e35214535214543 [7] BBC, (2023). BRICS leaders gather in Brazil for summit. Retrieved from https://www.bbc.co.uk/news/world-latin-america-59600020 [8] AFP, (2023). Brazilian President Lula da Silva draws parallel with Non-Aligned Movement in BRICS speech. Retrieved from https://www.france24.com/en/live-news/20230625-brazilian-president-lula-da-silva-draws-parallel-with-non-aligned-movement-in-brics-speech [9] Reuters, (2023). Brazilian President Lula da Silva warns of the rise of protectionism. Retrieved from https://www.reuters.com/world/americas/brazilian-president-lula-da-silva-warns-rise-protectionism-2023-06-25/ [10] The Guardian, (2023). BRICS leaders issue joint statement condemning U.S. trade policies. Retrieved from https://www.theguardian.com/world/2023/jun/25/brics-leaders-issue-joint-statement-condemning-us-trade-policies [11] CNN, (2023). Trump administration has not clarified 'anti-U.S. policies' reference. Retrieved from https://www.cnn.com/2023/06/25/politics/trump-administration-anti-us-policies-reference/index.html
- The BRICS nations, in their joint statement, have criticized the U.S.'s unilateral tariff actions, as they believe these actions distort global trade and violate World Trade Organization (WTO) rules, which can be categorized as 'policy-and-legislation' and 'news-related'.
- The BRICS leaders have expressed disapproval of what they term "indiscriminate" U.S. tariffs, with Brazilian President Luiz Inácio Lula da Silva warning of the rise of protectionism, a topic that falls under 'politics', 'war-and-conflicts' and 'general-news'.
