Trump Warns of 10% Extra Tariffs on Countries Aligning with BRICS, China Responds Cautiously

Moneylife Digital Team 07 July 2025

Investor Interest

US president Donald Trump has issued a sharp warning to countries supporting the BRICS alliance, threatening an additional 10% on those he claims are aligning with the bloc’s 'anti-American policies.' The move escalates tensions as the 17th BRICS Summit takes place in Brazil, where the grouping—comprising Brazil, Russia, India, China, and South Africa—has openly criticised rising trade protectionism, including US tariff hikes.

“Any country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10 per cent Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump posted late Sunday on his social media platform, Truth Social.

The post followed the BRICS summit’s statement condemning unilateral tariff increases, without naming the US directly. The grouping also condemned recent attacks by the US and Israel on Iran, further heightening geopolitical friction.

Reacting to president Trump’s remarks, China sought to downplay the controversy. “BRICS is not a bloc for confrontation and does not target any third country,” Chinese foreign ministry spokesperson Mao Ning told reporters in Beijing on Monday. “It is an important platform for cooperation among emerging markets and developing countries. BRICS advocates openness, inclusiveness and win-win cooperation.”

President Trump's threat marks a significant escalation in the ongoing global trade tensions and appears aimed at dissuading US trade partners from aligning too closely with the BRICS coalition, whose influence has been steadily growing, especially in the Global South.

The Trump administration is also set to resume issuing tariff letters and trade deal notifications to various countries beginning today. This comes as a 90-day pause on higher duties is due to expire on Wednesday, potentially opening the door to a new wave of trade barriers under the America First doctrine.

The 17th BRICS Summit in Brazil is being closely watched for its evolving posture on global governance, trade policy, and political alignment. While the bloc has traditionally championed multipolar cooperation, its recent criticisms of US actions have been viewed in Washington as increasingly adversarial.

Analysts warn that president Trump’s blanket tariff threat could disrupt trade relations with several countries, including some long-time allies, depending on how 'alignment' with BRICS policies is interpreted. Critics argue that such a punitive approach risks further isolating the US on the global stage and could prompt retaliatory measures.

As the BRICS summit continues and global markets absorb the implications of president Trump’s ultimatum, diplomatic efforts are expected to intensify in the days ahead to prevent a fresh round of trade disputes.

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