Summary
- Trump warns BRICS nations of swift retaliation if they “form meaningfully.”
- U.S. president pledges to protect the dollar’s reserve currency status.
- Brazil faces a 50% tariff hike as Washington probes its trade practices.
Trump’s Escalating Trade Rhetoric Against BRICS
U.S. President Donald Trump has reignited global trade tensions with his latest threat to impose a 10% tariff on imports from all BRICS nations, asserting that the group would “end very quickly” if it consolidates its economic power. Speaking on Friday, Trump criticized the bloc — which includes Brazil, Russia, India, China, South Africa, and newer entrants like Iran and Indonesia — claiming it exists to undermine the United States and the dollar’s global dominance.
Trump’s July 6 announcement of a potential tariff on countries “aligning with anti-American policies” comes amid growing friction over Washington’s “America First” trade agenda. His statements also underscore his commitment to preserving the U.S. dollar’s status as the world’s reserve currency, coupled with his firm rejection of introducing a central bank digital currency in America.
Trump’s targeting of BRICS coincides with a shifting global economic order, where multilateral forums like the G7 and G20 are increasingly divided. By contrast, BRICS has sought to position itself as a platform for collaborative diplomacy and economic cooperation outside Western influence.
#Breaking | U.S President Donald Trump claims BRICS 'fading fast'
— TIMES NOW (@TimesNow) July 19, 2025
– Trump threatens 10% tariff on BRICS
The fact is, BRICS countries will have to deal with some economic pragmatism…: Foreign Affairs Expert Robinder Sachdev tells @anchoramitaw @RishabhMPratap with details. pic.twitter.com/CUMjofEYQb
BRICS Response and Internal Dynamics
- BRICS leaders deny being anti-American, emphasizing economic cooperation.
- Brazil dropped plans for a common BRICS currency but is pushing BRICS Pay.
- Expansion last year added Iran and Indonesia to the group’s fold.
While Trump’s rhetoric has drawn global headlines, BRICS leaders have consistently rejected the notion that the bloc was formed to target U.S. interests. Brazil, which currently holds the BRICS presidency, stepped back from advocating a common currency earlier this year but has advanced discussions on BRICS Pay — a cross-border payment system designed to facilitate trade in local currencies and reduce dependence on the dollar.
The group’s recent expansion, which included Iran and Indonesia, has amplified its geopolitical weight, especially with several members voicing indirect criticism of U.S. trade and military policies during the last summit in Brazil. Observers say Trump’s aggressive tariff strategy could accelerate the bloc’s push to strengthen internal economic mechanisms that circumvent the U.S.-led global financial system.
Brazil in Trump’s Crosshairs
- Trump announces a 50% tariff on Brazilian imports effective August.
- Washington launches a probe into Brazil’s “unfair” trading practices.
- Brazilian industries brace for economic fallout amid strained relations.
Among BRICS members, Brazil has emerged as a primary target of Trump’s trade offensive. Alongside the 10% tariff threat on all BRICS imports, the U.S. president has singled out Brazil with a steep 50% tariff on its exports, set to begin in August. Washington is also conducting an investigation into what it deems “unfair trading practices” by Brazil, further escalating tensions.
Brazilian officials have expressed concern over the economic consequences, particularly for agricultural and industrial exports that rely heavily on U.S. markets. Analysts warn that a prolonged trade dispute could dent Brazil’s growth prospects and push it closer to alternative markets, including China and Russia.
The Global Stakes
Trump’s tariffs and his continued verbal attacks on BRICS could reshape trade alignments, especially if the bloc accelerates its financial independence efforts. While the immediate economic impact of a 10% tariff might be manageable, the broader diplomatic consequences could deepen divides between the U.S. and emerging economies.
As Trump pushes his “America First” narrative into a second term, the clash between U.S. economic interests and BRICS ambitions is poised to become a defining feature of global trade dynamics. Whether Washington’s confrontational stance will curb the rise of BRICS or embolden it to strengthen alternative trade systems remains a critical question.
