US President Donald Trump has announced that countries aligning with the policies of the Brics alliance, which he claims oppose US interests, will face an additional 10% tariff on their exports to the United States. The warning was issued via social media, with Trump stating, “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 Brics group, comprising Brazil, Russia, India, China, South Africa, and newer members including Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates, represents over half the world’s population. The alliance aims to enhance its members’ global influence and challenge Western economic dominance. Trump has frequently criticised Brics, particularly over proposals to develop a currency to rival the US dollar, previously threatening 100% tariffs on such moves.
Treasury Secretary Scott Bessent, speaking to CNBC, indicated progress in talks, saying, “My mailbox was full last night with a lot of new offers, a lot of new proposals.” So far, the US has secured trade agreements with the UK, Vietnam, and a partial deal with China. The UK deal reduces tariffs on British cars and aerospace goods, while Vietnam faces a 20% tariff on its exports to the US, with higher rates for goods trans-shipped through Vietnam. The partial China deal lowers tariffs on some Chinese imports from 145% to 30%.
The European Union is negotiating to maintain a provisional 10% tariff on most goods and reduce higher taxes on cars, steel, and aluminium. A recent discussion between European Commission President Ursula von der Leyen and Trump was described as productive, despite earlier threats of a 50% tariff on the EU.
As the 1 August deadline approaches, global trade dynamics remain uncertain, with Trump’s policies continuing to reshape international supply chains and economic relationships.