US vs BRICS? Trump Warns 10% Tariff Amid De-Dollarization Tensions

Former US President Donald Trump has threatened a blanket 10% tariff on all BRICS countries, accusing the bloc of trying to weaken the US dollar’s 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”: Trump’s Tariff Threat Explained

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

“Anybody that’s in BRICS is getting a 10% charge pretty soon … If they’re a member of BRICS, they’re 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. That’s 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?

Trump’s 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.

BRICS–US 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.

India’s Balancing Act: BRICS Member, US Ally

India finds itself in a delicate spot. While it’s 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 hasn’t 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 Trump’s plan advances.

Could This Backfire on the US?

While the tariff threat fits Trump’s 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
  
  

Read more: Trump Says ‘Close to India Trade Deal’ While Slapping Tariffs on 14 Countries