BRICS to respond to Trump tariffs? Brazil President Lula to reach out to PM Modi, Xi Jinping

The BRICS nations that have been slapped with the highest US tariffs might discuss the same and issue a joint response. The core group of countries – Brazil, Russia, India, China and South Africa – have been slapped with tariffs of up to 50 per cent. 

Russia is the most sanctioned country in the world currently. Apart from that Brazil and India face 50 per cent tariffs, and China and South Africa face 30 per cent tariffs. China is engaging in trade talks with the US, who has also indicated that it might slap Beijing with tariffs similar to New Delhi. Trump imposed 25 per cent tariffs on India last week, and another 25 per cent on Wednesday. 

Brazilian President Luiz Inacio Lula da Silva, who has been vocal about his criticism of Donald Trump, said that he would call the leaders of India and China to discuss a joint BRICS response. "What President Trump is doing is tacit — he wants to dismantle multilateralism, where agreements are made collectively within institutions, and replace it with unilateralism, where he negotiates one-on-one with other countries. What bargaining power does a small Latin American country have against the United States? None,” he said.

Lula said he will initiate a conversation with Prime Minister Narendra Modi and China's Xi Jinping, followed by other leaders after that. "I'm going to try to discuss with them about how each one is doing in this situation, what the implications are for each country, so we can make a decision. It's important to remember that the BRICS have ten countries at the G20," he added. 

G20 includes twenty of the world’s biggest economies. Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates are newer members of BRICS. Currently, Brazil holds the presidency of the BRICS bloc.

Trump has cited New Delhi’s continued purchase of Russian oil as the reason behind the additional 25 per cent. The US administration has said India’s purchases of Russian oil has enabled Moscow to continue its war against Ukraine. Meanwhile, with Brazil, Trump imposed 50 tariffs over the government’s supposed witch-hunt against former President Jair Bolsonaro.

The US President has also taken umbrage at the group as a whole. He has accused the BRICS bloc of engaging in ‘anti-American’ activities, and attempting to de-dollarise. Trump had also warned nations against joining the bloc, and warned them of exorbitant tariffs.