Why Donald Trump’s 10% tariff threat on BRICS nations reignites global trade war as bloc pushes ahead with anti-dollar strategy

Nancy Jaiswal | Jul 08, 2025, 14:38 IST
( Image credit : Indiatimes )
Donald Trump’s latest tariff threat against BRICS has reignited tensions as the group doubles down on its anti-dollar push. With new members joining and influence growing, BRICS pushes back, accusing the US of economic disruption and power misuse.
Tensions between the United States and the BRICS group rose again this week after President Donald Trump announced a 10% tariff on nations aligning with what he called “anti-American policies”. The president did not specify which policies he meant, nor did he name any particular member country.

Trump’s message, posted on his platform Truth Social, followed his earlier threat of 100% tariffs against BRICS countries if they attempted to replace the US dollar in global trade. Ironically, that earlier warning had pushed the bloc further toward developing alternative payment systems and strengthening trade among members.

Global pushback from BRICS leaders


The response from BRICS members was swift. Brazilian President Lula da Silva called Trump’s announcement “very mistaken and very irresponsible.” At a press briefing, he stated, “The world has changed. We don’t want an emperor. We are sovereign countries.”
Lula reiterated the group’s commitment to reducing dependency on the dollar, calling it a non-reversible process that would progress “step by step.” Meanwhile, China, currently engaged in its own trade dispute with the US, said “trade and tariff wars have no winners and protectionism offers no way forward.”

South African President Cyril Ramaphosa and Bolivian President Luis Arce also voiced opposition. Russian Foreign Minister Sergei Lavrov accused the US of abusing its power in the global economic system.

BRICS statement criticizes tariff use, without naming the US


In a joint statement issued after a summit in Brazil, BRICS leaders—including Indian Prime Minister Narendra Modi—criticized the rise of unilateral tariffs, warning that such actions distort trade and violate WTO rules. While the statement avoided naming Trump or the US directly, the implications were clear.

The bloc warned that excessive tariff use could lead to reduced trade volumes, disrupted supply chains, and greater economic inequality.

Why Donald Trump’s 10% ta
Why Donald Trump’s 10% tariff threat on BRICS nations reignites global trade war as bloc pushes ahead with anti-dollar strategy
( Image credit : US President Donald Trump | Credit: X )

Broader geopolitical context


The BRICS statement also included strong words on international conflicts. It condemned attacks on Iran’s civilian and nuclear sites, seen as a reference to US and Israeli actions. The group also expressed concern over Gaza and condemned the April 22 attack in Jammu and Kashmir.

The expansion of BRICS—now including countries like Iran, Egypt, UAE, Ethiopia, and Indonesia—adds weight to its presence. With more nations seeking membership, including Saudi Arabia and Turkey, the bloc’s influence continues to grow.

Despite criticisms about its internal differences, BRICS is increasingly seen as a counterbalance to US-led global economic policies. As Bolivia’s President Arce put it: “There is a clear struggle between the old stagnant bloc of the US and Europe and the emerging bloc of BRICS countries.”

Trump’s tariff warning may have been meant to intimidate, but BRICS seems more unified—and more defiant—than ever.

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