US President Donald Trump has issued a stern warning that any nation aligning with Brics policies that oppose US interests will face an additional 10% tariff. This comes as part of a broader protectionist trade agenda under Trump’s administration.
He emphasized the policy on social media, stating unequivocally, “There will be no exceptions.” Brics—a bloc including China, Russia, and India—has long been in Trump’s crosshairs, particularly as it seeks to challenge Western economic dominance.
Although a deadline of 9 July was set for trade agreements, the US has confirmed that new tariffs will officially begin on 1 August. Trump plans to send letters to countries outlining the specific tariff rates they will face if no agreement is reached.
Treasury Secretary Scott Bessent noted a flurry of activity, with several countries reportedly submitting new offers in a bid to avoid the penalties. However, major deals have only been finalized with the UK, Vietnam, and partially with China so far.
US Secures Key Trade Deals, Prepares Broader Tariff Enforcement as Talks Conclude Soon
The US has struck a tariff-cutting deal with the UK, involving autos and aerospace products, and secured a bilateral agreement with Vietnam involving steep tariffs on trans-shipped goods. A partial de-escalation has also occurred with China, with both sides reducing tariffs and removing certain trade barriers. However, some key issues remain unresolved—most notably the tariffs on UK steel, which have yet to be addressed fully.
Earlier this year, Trump imposed broad import tariffs, claiming they would protect American jobs and manufacturing. These included taxes of up to 50%, although many were suspended temporarily to allow for trade negotiations.
A 10% blanket tariff was implemented in the interim, affecting most US trading partners. With the negotiation window ending, the US has made it clear that new tariff letters will go out, formalizing the next stage of its trade enforcement.
Brics Expansion, Currency Threats, and China’s Dominance Deepen Global Trade and Policy Divides
Tensions have grown following recent Brics meetings, where finance ministers openly criticized US trade policies and proposed IMF reforms and currency alternatives. Trump’s latest threats follow earlier warnings of 100% tariffs on Brics members if they pursued a rival currency to the dollar.
The expansion of Brics in 2023 to include countries like Egypt, Saudi Arabia, and the UAE has only intensified the geopolitical rivalry, with the bloc now representing more than half of the world’s population.
Trade experts warn that moving away from Brics nations—especially China—will be difficult due to their dominance in critical sectors like electric vehicles, rare earths, and magnets. Andrew Wilson of the International Chambers of Commerce emphasized the global reliance on Chinese production.
Meanwhile, the EU remains in ongoing discussions with the US over tariffs on autos and steel, aiming to avoid steep duties while maintaining transatlantic trade stability.
