A Renewed Trade War: Trump’s 10% Tariff Threat on BRICS Allies
In a dramatic resurgence of his hardline trade tactics, former U.S. President Donald Trump has ignited fresh global tensions by vowing to impose a 10% additional tariff on countries aligning with what he calls BRICS’s “anti-American policy.” As the July 9 tariff suspension deadline approaches, the U.S. administration under Trump has finalized preparations to notify 10 to 12 countries of these new tariff barriers. This move is sending shockwaves through global markets and igniting fierce diplomatic backlash—led by China.
China’s Defiance: “Tariffs Solve Nothing”
The most forceful rebuttal came from China’s Ministry of Foreign Affairs, where spokesperson Mao Ning dismissed Trump’s declaration as “pressure politics”. She added, “Tariffs do not benefit anyone. This is just pressure politics and its purpose is to harm global cooperation.” This sharply worded response was delivered during a regular press briefing and signals Beijing’s growing defiance toward what it sees as Western economic coercion.
China’s message is clear: the BRICS alliance is evolving from an economic bloc to a political force, and it will not be intimidated by American unilateralism. The escalating confrontation between the U.S. and China has once again pushed the global economic order into a precarious zone.
Brasilia BRICS Summit: A Turning Point in Global Power Dynamics
At the BRICS Summit in Brasilia, condemnation of U.S. and Israeli military actions in Iran was unanimous among members, sparking outrage from Washington. Trump, in a fiery post on his platform ‘Truth Social’, warned:
“All countries which stand with BRICS in anti-American policy will be imposed an additional 10% tariff. There will be no exception to this.”
The BRICS platform—which includes Brazil, Russia, India, China, and South Africa, and now welcomes Iran, Egypt, Ethiopia, UAE, and Indonesia—has strategically aligned itself with the Global South narrative. The summit theme, “Strengthening cooperation of the Global South for inclusive and sustainable global governance,” underlined its intention to challenge Western-dominated frameworks.
Trump’s Second Term: Repeating History with Higher Stakes
During his first presidency, Trump had already slapped tariffs on China, India, Mexico, and several EU nations. Now, with a second term underway, he appears ready to revive and amplify those policies—specifically targeting nations seen as non-compliant with U.S. interests.
However, the global environment has shifted. The emergence of a larger, more politically charged BRICS poses new challenges. This is not merely economic maneuvering—it’s a test of global alliances, ideological narratives, and strategic positioning.
India’s Delicate Dance: Global South Leader, U.S. Strategic Partner
India played a vital role at the BRICS summit, championing the Global South’s cause. Yet, New Delhi treaded carefully. While vocal about the need for equitable global governance, India avoided directly confronting the U.S.
This duality in India’s foreign policy reflects its balancing act between BRICS solidarity and strategic U.S. partnerships. Analysts suggest that India, unlike China and Russia, is likely to navigate a middle path, aiming to avoid economic retaliation while preserving its leadership in South-South cooperation.
Global Trade at Risk: The Fallout of Trump’s Tariff Strategy
Trump’s aggressive tariff announcement risks plunging the global trade system into another era of fragmentation and economic volatility. Analysts fear a repeat of the 2018-2019 trade war, which disrupted supply chains, hurt consumer markets, and rattled financial markets globally.
The World Trade Organization (WTO) is unlikely to intervene effectively, given the weakening of its dispute resolution system and lack of consensus among members. That leaves the door wide open for a tit-for-tat tariff escalation, with the BRICS bloc potentially responding with countermeasures.
Geopolitical Polarization: A Divided World Order
Trump’s statement has drawn a clear ideological line—those standing with BRICS are against the U.S.. This framing polarizes the global community, reviving Cold War-style bloc politics.
On one side, the U.S. and its traditional allies aim to maintain the existing international order.
On the other, BRICS is advancing a vision of multilateralism, sovereignty, and inclusive governance.
This ideological split could impact global cooperation on issues like climate change, development finance, digital governance, and peacekeeping.
Iran’s Presence: Symbol of Defiance
Iran’s active role in the summit, along with outspoken criticism of U.S.-Israel policies, turned the BRICS gathering into a symbol of coordinated resistance. With Iran recently becoming a full member of BRICS, the alliance is now overtly challenging the geopolitical influence of the West.
For Trump, this inclusion is unacceptable. The decision to target BRICS countries with tariffs may be aimed partly at punishing Iran indirectly and partly at reasserting U.S. hegemony in regions tilting away from American influence.
Economic Blowback: What’s at Stake for the U.S. and BRICS
While the Trump administration sees tariffs as leverage, the strategy carries substantial economic risks for the U.S. as well:
Higher prices for American consumers due to increased import costs
Supply chain disruptions in critical sectors, including tech and pharmaceuticals
Retaliatory tariffs from BRICS countries, affecting U.S. exporters
Alienation of global partners who seek more inclusive trade mechanisms
For BRICS nations, the challenge will be to strengthen internal trade, diversify export markets, and build economic resilience against U.S. pressure.
Conclusion: A Defining Moment in 21st-Century Diplomacy
As Trump’s July 9 deadline nears, the world is watching to see whether this renewed tariff war will spark a global economic realignment. China’s assertiveness, India’s diplomacy, and BRICS’s expansion signify a seismic shift away from unipolar dominance toward a multi-nodal, contested global order.
Trump’s tariffs may win short-term political favor at home, but they risk catalyzing a new era of trade nationalism, geopolitical fragmentation, and economic decoupling. The choice ahead for many nations is stark: align with the U.S. and preserve old rules—or join BRICS and help write new ones.
