Trump has warned of an additional 10% tariff on any country aligning with the “anti-American policies” of the BRICS group. The move adds fuel to an already tense trade environment as BRICS leaders convene in Brazil, seeking greater global influence and multilateral reform.
A new tariff threat from Donald Trump has cast a long shadow over the BRICS summit in Rio de Janeiro, where developing nations are gathering to assert their global influence in a world increasingly fractured by protectionism and geopolitical rivalry.
In a post on Truth Social, Trump warned that any country “aligning themselves with the Anti-American policies of BRICS” would be subject to an additional 10% tariff.
“There will be no exceptions to this policy,” Trump wrote, without defining what those “anti-American policies” entailed.
The announcement, timed hours after the BRICS nations issued a joint statement condemning rising tariffs and trade barriers, appears to mark a deliberate escalation of Trump’s hardline stance on global trade.
His administration is currently racing to finalize a series of trade deals ahead of a self-imposed July 9 deadline for broader retaliatory tariffs.
The BRICS bloc—originally composed of Brazil, Russia, India, China, and South Africa—has expanded its membership to include Egypt, Ethiopia, Iran, Indonesia, and the UAE.
Saudi Arabia has held back from formally joining, but more than 30 other nations have expressed interest.
Together, the expanded group now represents over half of the world’s population and roughly 40% of global economic output.
Leaders gathered at Rio’s Museum of Modern Art this week—among them India’s Prime Minister Narendra Modi, South African President Cyril Ramaphosa, and Brazil’s President Luiz Inácio Lula da Silva—have framed the bloc as a counterweight to traditional Western institutions.
“BRICS is the heir to the Non-Aligned Movement,” Lula said in his opening remarks. “With multilateralism under attack, our autonomy is in check once again.”
The bloc’s ambitions extend beyond symbolism. Calls to reform the United Nations Security Council and the International Monetary Fund featured prominently in summit discussions.
The group also backed Ethiopia and Iran’s accession to the World Trade Organization and endorsed a new initiative within the BRICS New Development Bank aimed at lowering financing costs across member states.
Despite the summit’s rhetorical unity, the absence of key players highlighted internal fractures. Chinese President Xi Jinping skipped the meeting, sending Premier Li Qiang in his place.
Russian President Vladimir Putin, subject to an arrest warrant from the International Criminal Court, attended virtually.
While many BRICS members share an interest in reducing reliance on the U.S.-led financial system, their economic priorities and geopolitical interests often diverge.
The inclusion of regional rivals such as Iran and the UAE has further complicated attempts at consensus.
Still, the group issued strong statements on a range of global issues: condemning Israeli military action in Gaza, voicing support for Iran’s civilian nuclear infrastructure, and calling a recent incident in India-administered Kashmir a “terrorist attack.”
They also issued a separate communique on artificial intelligence, emphasizing protections against unauthorized data use and advocating for fair compensation frameworks.
Trump’s latest move adds further uncertainty to global trade flows already battered by geopolitical strife and inflationary pressures.
While the U.S. has dialed back some of its most aggressive tariffs since April—when rates on Chinese goods briefly spiked to 145% before settling at 30%—the removal of duty-free status on consumer imports under $800 has hit e-commerce exporters hard. Bargain sellers like Temu and Shein are facing particular scrutiny.
FedEx and UPS, often viewed as proxies for global economic activity, have already reported demand weakness linked to the tariff environment.
Executives at FedEx recently noted that the removal of duty-free treatment for small consumer shipments is expected to weigh on U.S.-China air transit volumes.
Countries such as Indonesia, whose senior economic minister is in Rio for the BRICS summit, are now walking a diplomatic tightrope. A U.S. trip is scheduled immediately after the summit to continue tariff talks with Washington.
While much of the summit’s focus has been geopolitical, climate finance also emerged as a major theme. Brazil, which will host the UN climate summit later this year, is using the BRICS platform to highlight the climate efforts of emerging economies.
Two sources told Reuters that China and the UAE expressed intent to invest in a proposed Tropical Forests Forever Facility, aimed at financing conservation across endangered rainforests.
As Western economies remain mired in internal division and electoral cycles, Lula and others see the moment as ripe for a new form of collective leadership.
“If international governance does not reflect the new multipolar reality of the 21st century,” Lula said, “it is up to BRICS to help bring it up to date.”
For multinational corporations and finance chiefs, the summit and its fallout have direct implications. Trump’s threat introduces another layer of tariff risk that could affect cross-border supply chains, pricing strategies, and market access—especially in economies with deep BRICS ties.
The scale and pace of economic realignment suggest growing urgency around alternative trade corridors, risk-adjusted forecasting, and government relations strategy.
If Trump’s warning becomes policy, companies with exposure to BRICS-aligned nations may need to reprice the cost of political friction into their long-term plans.