Context:

President Trump has threatened to impose an additional 10 percent tariff on countries aligning with BRICS' so-called 'Anti-American policies,' without specifying which policies or countries would be targeted. This announcement follows a BRICS summit in Rio de Janeiro, where the group criticized unilateral tariffs and military actions by the US, including strikes on Iran. The BRICS coalition, which includes major emerging economies like Brazil, Russia, India, China, South Africa, and others, was originally formed to amplify the influence of these nations in global economic affairs. Trump's tariff threats are part of a broader trade strategy, with a recent pause on tariffs to negotiate concessions, although only preliminary deals with Britain and Vietnam have been reached. Previously, Trump had also threatened severe tariffs if BRICS moved to replace the US dollar as the global reserve currency, highlighting ongoing tensions between the US and the BRICS nations over economic policies and international finance roles.

Dive Deeper:

• President Trump issued a threat of an additional 10 percent tariff on countries supporting BRICS' policies, stating there would be no exceptions, though he did not clarify which policies or countries would be affected.

• The BRICS summit in Rio de Janeiro led to a statement condemning unilateral tariffs for causing trade disruptions and uncertainty, and criticizing recent US military actions in Iran as violations of international law.

• BRICS, initially formed by Brazil, Russia, India, and China, and later including South Africa and other nations, aims to enhance the geopolitical influence of these key emerging economies.

• The US administration paused tariffs on numerous trade partners for 90 days to negotiate concessions, achieving only preliminary agreements with Britain and Vietnam as of now.

• Trump has previously threatened to impose a 100 percent tariff if BRICS nations replaced the US dollar as the world's reserve currency, following a Russian report urging a reassessment of the dollar's dominance.

• The BRICS group's criticism of US tariffs and military actions underscores ongoing geopolitical tensions and differing approaches to global trade and economic governance.

• The US's aggressive tariff strategy reflects broader trade policy goals, aiming to secure better terms for American interests, despite limited success in negotiations with major trading partners.