Trump Warns of 10% Tariff for Countries Aligning with BRICS' Policies

In a fresh threat to the fast-growing BRICS coalition, US President Donald Trump warned that any country aligning with the 'anti-American policies' of BRICS would face an additional 10 per cent tariff. Trump also threatened a 100 per cent tariff on BRICS nations considering reducing the use of the dollar in global trade.

Since the US excluded Iran in 2012 and Russia in 2022 from SWIFT, countries have been reducing their reliance on the US dollar. Russia and China have started trading in domestic currency.

BRICS, now comprising 10 nations, accounts for 45 per cent of the global population and contributes over 35 per cent to the world's GDP. At the Kazan summit in October 2024, Egypt, Ethiopia, Iran, and the United Arab Emirates joined as new members, with Indonesia joining in January 2025.

In June 2022, Russia proposed a new international reserve currency based on a basket of BRICS currencies. However, BRICS nations clarified they do not aim to replace the US dollar but provide an alternative for market efficiency and prosperity.

Trump's threat coincides with the US dollar hitting a three-year low due to expected disruptions from proposed tariffs.

In October 2024, India's External Affairs Minister stated that India does not target the dollar and is not pursuing de-dollarisation. Recent measures aim to de-risk Indian trade, not de-dollarise it.

India is cautious about de-dollarisation due to the rise of the Chinese yuan challenging the US dollar. India has not used the yuan for Russian oil imports despite its growing acceptance in Russia.

Ajay Sahai, Director General & CEO of FIEO, emphasized that India should support local currency initiatives without favoring China disproportionately.

According to the source: The Indian Express.