BRICS prepares for a tariff standoff with Donald Trump

The day of reckoning for Donald Trump and his MAGA cohort is finally here. But the climax is one the U.S. President likely did not anticipate. With just two days left before the earlier July 9 tariff deal deadline, Trump’s so-called “Liberation Day” blueprint remains far from final.

In the past 90 days, the United States has managed to ink trade deals with just two countries — the United Kingdom and Vietnam. So, Trump is doing what he does best: trying to browbeat his trade partners into submission.

The US President is expected to fire off letters on July 7 to several countries, notifying them of higher tariff rates. According to US Commerce Secretary Howard Lutnick, the new tariffs will take effect on August 1.

Trump has also renewed his focus on the BRICS nations. On Sunday, he threatened to impose an additional 10% tariff on any country aligning with what he called the “anti-American policies” of the BRICS group of developing nations.

The bloc originally comprised Brazil, Russia, India, China, and South Africa. It has since expanded to include Iran, Ethiopia, Egypt, Indonesia, and the UAE. BRICS is currently holding its 17th annual summit in the Brazilian capital, Rio de Janeiro.

BRICS hits back

The bloc of emerging economies has issued a strong response. Its Rio de Janeiro Declaration, adopted unanimously on July 6, expressed dismay over the unilateral American tariffs.

“We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules. In this context, we reiterate our support for the rules-based, open, transparent, fair, inclusive, equitable, non-discriminatory, consensus-based multilateral trading system with the World Trade Organization (WTO) at its core,” the declaration stated.

It added that the indiscriminate rise in tariffs and non-tariff measures threatens to reduce global trade, disrupt global supply chains, and inject uncertainty into international economic and trade activity.

China, Russia counter Trump allegations

China quickly criticized Trump’s threats. Foreign Ministry spokesperson Mao Ning said BRICS is a “positive force” in the international community and that “using tariffs as a tool for coercion and pressure” serves no one’s interests.

Russia also clarified its position, stating that BRICS has never worked to undermine other countries, but is rather “a group that shares common approaches and a shared worldview on cooperation based on mutual interests.”

BRICS rattles Trump?

There’s growing evidence that BRICS is more than a blip on the White House radar. The bloc — which often challenges American positions — now accounts for 40% of global GDP. In contrast, the G7’s share has dropped to 28%, down from nearly 50% in the 1980s.

What’s more, BRICS economies are projected to grow at an average of 3.4% this year, compared to 1.2% for G7 nations.

India hardens stance

Meanwhile, signs are emerging that a US-India bilateral trade deal may not materialise in time for the Trump tariff deadline.

According to senior government sources, talks are stalled over politically sensitive issues such as agriculture and labour.

Commerce Minister Piyush Goyal, who has visited the US multiple times in the past three months, emphasised that protecting India's interests remains the top priority of the Narendra Modi government.

“Today, the world sees India as a reliable partner in trade and industry. People believe that India and Indians do business honestly. That is why the world wants to increase trade with India,” Goyal said during a visit to Srinagar on July 6.

Agriculture Minister Shivraj Singh Chouhan echoed the sentiment, stating, “Nation First is our mantra. No negotiations will take place under pressure. Talks will happen only with the interests of our farmers in mind.”