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

by Shan 2025-07-09 12:14:07

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:

Country	Key Moves	Impact
China	Settling oil in yuan with Gulf nations	Weakens dollar in energy markets
Russia	Trades with India using ruble-rupee	Cuts out the dollar from key exports
India	Bilateral trade in rupee with UAE and Iran	Boosts rupee use in global trade
Brazil	Currency swap agreements with China	Reduces USD reliance in Latin America
South Africa	Backing BRICS alternative payment proposals	Symbolic support for de-dollarization

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:

Country	Main US Imports	Tariff Impact
India	Pharmaceuticals, textiles, IT	Higher prices, squeezed exporters
China	Electronics, consumer goods	Disruption in US supply chains
Brazil	Beef, soy, iron ore	Costlier food and materials in the US
South Africa	Metals, wine, minerals	Niche industries affected

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

Risk	Likelihood	Potential Impact
US inflation surge	High	Worsens cost-of-living crisis
BRICS retaliation	Medium	Exporters and farmers hit
Dollar erosion (long-term)	Low now, rising	Could hurt US borrowing power
India trade strain	High	Diplomatic pressure rises

Lula Pushes Back: “We Don’t Want an Emperor”
Brazil’s President Luiz Inácio Lula da Silva, who hosted the BRICS summit in Rio, responded sharply to Trump’s comments:
“We will not accept any complaints about the BRICS summit. We do not agree with the US president insinuating he’s 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.
What’s Next: Will This Become a Global Trade War?
Trump didn’t 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.

India’s role remains complex, caught between BRICS solidarity and its US partnership.

The real battle may not be about tariffs — it’s about who controls the rules of global trade and money.

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