"Any country not bracing itself with or taking a stand against the anti-American policies of the Brics countries will pay an ADDITIONAL 10% tariff. This policy will have no such exceptions," said Trump.
Brics initially comprised Brazil, Russia, India, China and South Africa, but expanded last year to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates. Between them, the countries account for more than half the world's population and have become a chorus calling for changes in global financial systems, such as overhauling the International Monetary Fund and the role of the world's major currencies.
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The US had given nations until 9 July to settle on trade agreements to escape the tariffs. But the new tariffs will go ahead from 1 August, US officials stated. The US has so far only finalised deals with the UK and Vietnam, but has yet to settle a deal over steel tariffs on UK products.
Trump had announced large tariffs on broad categories of goods on 2 April, a date which he called "Liberation Day", but delayed their full implementation for three months, in order to allow for a period of negotiation. Now with negotiations close to a deadline, Trump said on Sunday: "They're going to be tariffs and very substantial tariffs, or we're going to do something else," signalling his resolve to carry out his threat.
Technology Secretary Howard Lutnick said the start date is set for 1 August. "As we speak, pictures are developing," Treasury Secretary Scott Bessent elaborated: "President Trump's going to be dispatching letters southward, saying that unless you guys get a move on, come August 1, you will boomerang back to your April 2 tariff level."
Geopolitical and Economic Stakes Rising
Trump's latest decision comes as the Brics countries slam US trade policies and emphasise alternative world order frameworks. Washington views the group's increasing clout and espousal of economic reform as a challenge to US primacy in global markets.
The President's threat is certain to stoke trade disputes with nations that may be exploring closer ties with Brics, including several of the world's top trading powers. Trump and his advisers say the tariffs are needed to protect U.S. manufacturing and U.S. jobs, but critics — including House Speaker Paul Ryan (R-Wis.) and some GOP lawmakers — have warned that such policies could isolate the U.S. and spur retaliation from global partners.
BRICS members collectively account for more than 50 per cent of the world's population, and the economic stakes are higher still. The reaction to the 1 August tariffs by countries will be key to determining the course of global trade to come.
