In a move that has already rattled foreign markets and U.S. allies alike, Donald Trump declared a sweeping new tariff threat over the weekend: any country that backs the BRICS bloc’s “anti-American agenda” could soon face an additional 10% tariff on their exports to the United States.
The warning, posted on Trump’s Truth Social account during the latest BRICS summit in Rio de Janeiro, landed like a thunderclap just days before his temporary tariff freeze ends on July 9.
Trump Unleashes Shocking New Tariff Threat
| Takeaway | Stat |
|---|---|
| New tariff penalty | 10% for BRICS-aligned nations |
| Peak tariff levels | Up to 70% starting August 1 |
| Impacted countries | Dozens, including U.S. allies |
Why Is Trump Targeting BRICS?
At its latest summit, BRICS—now expanded to include the UAE, Iran, Egypt, Ethiopia, and Indonesia—issued a statement blasting unilateral sanctions and tariffs, warning they hurt global trade and violate WTO rules. Trump’s response? Labeling the entire group “anti-American.” According to his social post, any country officially siding with the BRICS declaration could face the penalty tariff.
As someone who’s covered Trump’s trade battles since 2018, this reminds me of his China tariff playbook—shock the system first, figure out policy later. “We will not tolerate economic sabotage from our trading partners,” Trump wrote. “BRICS is pushing a globalist anti-U.S. doctrine, and we must defend American industry.”
What Happens Next?
A flurry of activity kicks off this week. On July 7, the U.S. begins sending formal letters to countries that might fall under the tariff hammer. This includes not just BRICS members, but potentially key allies like Japan, South Korea, and even EU nations that have expressed BRICS sympathy.
July 9 marks the end of the temporary pause on tariffs that Trump initiated in April. And unless nations secure new trade deals by August 1, tariffs could spike dramatically—up to 70%, plus the new 10% BRICS penalty.
“These new tariffs aren’t just a threat. They’re policy in motion,” said Commerce Secretary Howard Lutnick, stepping in during a Trump press conference where details got murky.
Financial Fallout Already Starting
Markets wasted no time reacting. India’s rupee dipped to ₹85.72 to the dollar, while Asian and European indices took a hit. Even domestic industries reliant on BRICS imports braced for supply chain disruptions. “The uncertainty is killing our pricing models,” said a Midwest manufacturer I interviewed last month. “We can’t plan if tariffs are moving targets.”
What Are BRICS Leaders Saying?
Brazil’s President Lula da Silva, hosting the summit, responded swiftly. In a televised address, he criticized Trump’s move as “protectionist overreach” and warned it could fracture already fragile global supply chains.
South Africa, India, and even Egypt echoed those concerns, arguing the U.S. should engage diplomatically, not punish via tariffs.
Is This Strategy or Political Theater?
Critics, including some in Trump’s own circle, say this is more about headlines than actual trade strategy. The term “TACO” (Trump Always Chickens Out) has resurfaced on Wall Street, suggesting Trump may never follow through if markets or polls react negatively.
Still, officials insist this isn’t just a bluff. “We want real trade deals,” said Treasury Secretary Kristi Bessent. “But if countries back BRICS, they’re aligning against U.S. interests. There’s a cost.”
FAQs
What is BRICS and who’s in it?
Originally Brazil, Russia, India, China, South Africa—now joined by Iran, Egypt, UAE, Ethiopia, Indonesia. Their joint aim is to build alternatives to Western-dominated institutions.
Will U.S. allies be hit?
Yes, potentially. If countries like Germany or Japan echo BRICS messaging or don’t secure a bilateral deal, they could see the 10% penalty.
Can Trump legally do this?
Yes, under U.S. trade law and executive powers, presidents can impose tariffs for national security or economic reasons.
