President Donald Trump announced on Sunday that he will impose an additional 10% tariff on any country that aligns with BRICS’ anti-American policies, escalating trade tensions as his July 9 deadline approaches for comprehensive tariff restructuring.
What Happened: Trump posted on Truth Social that “any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.” The announcement came hours before he confirmed tariff letters would be delivered to various countries starting Monday at 12:00 p.m. Eastern.
BRICS is an intergovernmental alliance of ten nations: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
The BRICS threat represents a significant expansion of Trump’s tariff strategy, which already includes base rates of 10% with additional levies reaching up to 70% for some nations. The president suspended most tariffs except the 10% base rate in April for 90 days of negotiations, a period ending July 9.
Why It Matters: According to Reuters, Trump has signed “take it or leave it” letters to 12 countries detailing specific tariff rates. Commerce Secretary Howard Lutnick confirmed the administration plans to finalize deals with ten major trading partners by the July 9 deadline, with tariffs taking effect August 1.
The BRICS announcement adds complexity to ongoing negotiations with major economies. Trump recently threatened Japan with 35% tariffs if no agreement is reached, while securing a trade deal with Vietnam, imposing 20% tariffs on Vietnamese exports and 40% on transshipped goods, particularly targeting Chinese products.
Trump’s strategy has shifted from comprehensive negotiations to bilateral letters, which he considers more efficient than complex trade talks. Only the United Kingdom has secured preferential treatment, with auto tariffs reduced from 27.5% to 10% and aerospace duties eliminated, benefiting companies like Rolls-Royce Holdings.
The Federal Reserve has expressed caution about interest rate cuts due to potential inflationary impacts from escalating tariffs.
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