Trade partners will receive missives regarding tariffs from Trump this Monday afternoon - Letters regarding tariffs from Trump will be dispatched to trade partners on Monday
In a move that could escalate trade tensions, US President Donald Trump has announced plans to impose tariffs on countries aligning with the BRICS bloc. The BRICS nations, which include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates, expressed "serious concerns" about the increase in unilateral tariffs and trade distorting measures by the US.
The threat of additional tariffs applies broadly to all BRICS nations involved in the summit in Brazil, as these are the core members of the group. Trump announced an extra 10% tariff on any country aligning with BRICS, without specifying exceptions or naming individual countries explicitly. However, the specifics of which countries may be exempt or targeted were not detailed by Trump in his statement.
The trade dispute between the US and the EU has not yet been resolved, as Brussels and Washington have not yet reached an agreement. The deadline for the EU in the trade dispute with the US is on Wednesday, but it remains unclear how this development will affect the ongoing negotiations.
Trump's tariff threat was reiterated as a potential increase up to 50% tariffs if agreements are not reached by August 1, 2025. This comes after Trump had previously imposed high tariffs on numerous countries in April, only to reduce them for most countries to 10 percent for a 90-day negotiating phase in April. US Treasury Secretary Scott Bessent confirmed that the tariffs would come into effect on August 1.
The BRICS alliance was founded to reduce the geopolitical dominance of the USA and Europe and to create a multipolar world order. The group, which initially consisted of Brazil, Russia, India, China, and South Africa, was expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates in 2023.
The BRICS nations make up around half of the world's population and 40 percent of global economic output. Trump's tariff threat could potentially harm these economies and disrupt global trade. The BRICS nations had criticized Trump's trade policy at a summit meeting on Sunday in Brazil, expressing their opposition to trade practices that are incompatible with the rules of the World Trade Organization.
Trump plans to send letters about tariffs to trading partners on Monday afternoon. It remains to be seen how these countries will respond to the threat of additional tariffs and whether negotiations will lead to a resolution of the trade dispute.
President of the European Parliament may express "serious concerns" about the escalating trade tensions with the US, following Trump's announcement of potential tariffs on countries aligning with the BRICS bloc. The growing politics of trade-and-conflicts, with its consequences on policy-and-legislation, could span into general-news as EU leaders might have to reevaluate their war-and-conflicts stance and economic policies in light of this development.
