Former US President Donald Trump has threatened a blanket 10% tariff on all BRICS countries, accusing the bloc of trying to weaken the US dollars global dominance. The move has triggered strong reactions from BRICS leaders and raised concerns about a fresh wave of global trade tension.

BRICS Will Pay a 10% Price: Trumps Tariff Threat Explained

At a White House cabinet meeting on Tuesday, Trump stated:

Anybody thats in BRICS is getting a 10% charge pretty soon If theyre a member of BRICS, theyre going to have to pay a 10% tariff.

The comment followed his earlier warning on Sunday and came just days after the BRICS Summit in Rio, where member nations indirectly criticized US trade policies and called for a fairer global financial system.

Trump, without offering evidence, claimed that BRICS was formed to degenerate the dollar and threaten the US economy:

BRICS was set up to take our dollar off as the standard. Thats like losing a world war.

What Is BRICS, and Why Is It Expanding?

BRICS originally included Brazil, Russia, India, China, and South Africa. Over the past year, it has welcomed new members such as Iran, Indonesia, Egypt, and the UAE expanding its influence across the Global South.

The bloc now represents:

• Over 40% of the global population
  
  

• Nearly 25% of global GDP
  
  

• Key players in oil, food, minerals, and tech
  
  

BRICS leaders have proposed alternatives to dollar-based trade, sparking US concerns about losing global financial control.

What Is De-Dollarization and Why the US Is Worried

De-dollarization refers to countries moving away from the US dollar in international trade and foreign reserves. This trend has grown stronger after years of US sanctions and dollar-based restrictions.

How BRICS Nations Are De-Dollarizing:

Experts argue that if more countries follow, the dollar could gradually lose its dominant reserve status something the US has relied on for decades to finance its deficits and enforce sanctions.

How Would a 10% Tariff Impact Global Trade?

Trumps proposal would apply a flat 10% import duty on all BRICS nations, regardless of their trade behavior or policies. That includes allies like India and major suppliers like China and Brazil.

BRICSUS Trade Snapshot:

A 10% blanket tariff could:

• Push US inflation higher
  
  

• Trigger retaliatory tariffs from BRICS
  
  

• Speed up supply chain shifts away from US markets
  
  

• Add strain on emerging economies, especially export-driven sectors
  
  

According to the USTR, BRICS nations accounted for over $800 billion in US imports in 2024. A 10% tariff would affect nearly $80 billion in goods.

Indias Balancing Act: BRICS Member, US Ally

India finds itself in a delicate spot. While its a founding BRICS member and supports a multipolar global financial system, it also maintains strong strategic and economic ties with the US.

India's exports to the US include critical sectors like:

• Generic medicines
  
  

• Software services
  
  

• Garments and chemicals
  
  

Any tariffs could hurt Indian MSMEs and large exporters alike. At the same time, India hasnt shown strong interest in a common BRICS currency, making its position more nuanced than its BRICS peers.

Indian analysts suggest New Delhi will avoid confrontation and quietly negotiate carve-outs if Trumps plan advances.

Could This Backfire on the US?

While the tariff threat fits Trumps long-standing rhetoric on America First, it may carry unintended consequences:

Possible Risks of a 10% Tariff on BRICS:

• Higher consumer prices in the US
  
  

• Retaliatory trade actions from BRICS countries
  
  

• Faster de-dollarization and alternative currency systems
  
  

• Supply chain disruptions for key goods
  
  

Lula Pushes Back: We Dont Want an Emperor

Brazils President Luiz Incio Lula da Silva, who hosted the BRICS summit in Rio, responded sharply to Trumps comments:

We will not accept any complaints about the BRICS summit. We do not agree with the US president insinuating hes going to put tariffs on BRICS countries.

Lula also warned against the return of unilateralism, hinting that global alliances cannot be dictated by one power.

Whats Next: Will This Become a Global Trade War?

Trump didnt specify a date for the tariff rollout. Insiders say it could be triggered if BRICS countries adopt anti-American actions a vague standard that leaves room for political interpretation.

But the broader trend is clear: rising geopolitical friction, economic fragmentation, and a slow shift away from US-centered trade systems.

Whether the 10% tariff becomes reality or not, its threat signals a deeper, ongoing power shift.

Key Takeaways

• Trump has threatened a 10% tariff on all BRICS imports, citing de-dollarization as a threat.
  
  

• BRICS expansion and non-dollar trade are increasingly seen as pushback against US dominance.
  
  

• A tariff could disrupt global trade, raise prices in the US, and trigger retaliation.
  
  

• Indias role remains complex, caught between BRICS solidarity and its US partnership.
  
  

• The real battle may not be about tariffs its about who controls the rules of global trade and money.
  
  

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