Is Trump Serious About a 10% Tariff on BRICS?
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Synopsis
In a bold move, President Trump threatens a 10% tariff on BRICS nations while alluding to a potential 200% tariff on pharmaceuticals affecting India. This article explores the implications of these tariffs and Trump's stance on the dollar's dominance in global trade.
Key Takeaways
- Trump threatens 10% tariff on BRICS members.
- Potential 200% tariff on pharmaceuticals could impact India.
- India opposes BRICS currency, citing dollar's importance.
- Last year, India exported $9 billion in pharmaceuticals to the US.
- Trump claims BRICS is set up to weaken the dollar.
New York, July 9 (NationPress) US President Donald Trump has reiterated his threat to impose a 10 percent tariff on BRICS nations, claiming that this alliance was created to undermine the dollar. During a Cabinet meeting on Tuesday, he stated, "Anyone who is part of BRICS will incur a 10 percent charge"—this includes India.
In relation to another trade matter impacting India, Trump warned of a potential 200 percent tariff on pharmaceutical imports, indicating that he would allow "about a year or a year and a half" for companies to adjust.
“We’ll provide them with a grace period to organize their operations,” he remarked regarding the pharmaceutical sector.
Last year, India's pharmaceutical exports to the US amounted to approximately $9 billion.
A reporter reminded Trump of his earlier comments suggesting a trade deal with India was imminent and inquired about the implications of the proposed BRICS tariff.
He responded: “Anyone in BRICS will face a ten percent charge. If they’re in BRICS, they will have to pay a tariff, and they won’t remain members for long.”
India has resisted the idea of a BRICS currency to compete with the dollar, effectively using a veto on this initiative.
External Affairs Minister S. Jaishankar articulated India’s stance in March: "We have no intention of replacing the dollar."
He emphasized the dollar's significance in maintaining global and Indian economic stability, asserting, "The dollar as the reserve currency is essential for international economic stability, and what we need is more stability, not less."
A letter sent to South Africa, a member of BRICS, indicated that it would incur a 30 percent tariff starting next month, but did not mention any penalties related to BRICS.
Trump insisted that the BRICS tariff would be implemented “soon.”
Despite India's successful efforts to prevent the establishment of a BRICS currency, Trump continues to express grievances regarding a supposed BRICS conspiracy.
“BRICS was established to harm us. It aims to undermine our dollar and replace it as the standard,” he claimed.
He expressed his opposition, likening it to suffering a defeat, stating, “If they wish to engage in that game, I can participate as well.”
Trump suggested that BRICS has “largely disbanded,” with only a few countries remaining involved.
"In my view, BRICS is not a credible alliance," he stated.
He asserted that their goal is to diminish the dollar's status “so that another nation can assume the standard, and we will not cede that position.”
India's resistance to a BRICS currency stems from concerns about potential manipulation by China.
Point of View
It's imperative to remain impartial while examining the ramifications of President Trump's recent tariff threats. The implications for international trade and economic stability are significant, particularly for nations like India that rely heavily on pharmaceutical exports. It's crucial to consider how these strategies will affect global alliances and economic ties.
NationPress
20/09/2025
Frequently Asked Questions
What is the proposed tariff on BRICS nations?
President Trump has proposed a 10% tariff on all BRICS members, claiming the group is undermining the US dollar.
How will this affect India?
India, being part of BRICS, would be subject to the 10% tariff, and could also be impacted by a potential 200% tariff on pharmaceutical exports.
What is India's stance on a BRICS currency?
India has opposed the creation of a BRICS currency to compete with the dollar, expressing concerns over economic stability.
What was the value of India's pharmaceutical exports to the US last year?
India's pharmaceutical exports to the US were nearly $9 billion last year.
Did Trump mention any tariffs against South Africa?
Yes, Trump indicated that South Africa would face a 30% tariff starting next month.
