Trump threatens extra 10% tariff on nations that side with Brics

Osmond Chia

Business reporter, BBC News

Getty Images US President Donald Trump claps as he arrives to speak at the Salute to America Celebration at the Iowa State Fairgrounds in Des Moines on 3 July, 2025. Getty Images

US President Donald Trump has warned that countries which side with the policies of the Brics alliance that go against US interests will be hit with an extra 10% tariff.

Trump has long criticised Brics, an organisation whose members include China, Russia and India, which was designed to boost countries’ international standing and challenge the US and western Europe.

“Any country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy,” Trump wrote on social media.

A deadline for countries to agree a tariff deal with the US had been set for 9 July but US officials now say they will begin on 1 August.

So far, the US has only struck trade agreements with the UK and Vietnam. However, Britain and America have still not reached a deal over taxes for UK steel imported by the US.

Since taking office in January, Trump has announced a series of import taxes on goods from other countries – arguing they will boost American manufacturing and protect jobs.

In April, on what he called “Liberation Day”, he announced a wave of new taxes on goods from countries around the world, although he quickly suspended his most aggressive plans to allow for three months of talks up until 9 July.

Asked whether the taxes would change on 9 July or 1 August, Trump said on Sunday: “They’re going to be tariffs, the tariffs are going to be tariffs.”

He added that between 10 and 15 letters would be sent to countries on Monday advising them on what the new tariff rate will be if a deal had not been reached.

US Commerce Secretary Howard Lutnick clarified that the taxes will come into force on 1 August.

On Sunday, Treasury Secretary Scott Bessent had told CNN: “President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level.”

Trump’s threat to countries working with Brics nations emerged after members criticised US tariff policies as well as proposing reforms to the International Monetary Fund (IMF) and how major currencies are valued.

Last year, the list of Brics members expanded beyond Brazil, Russia, India, China and South Africa to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates.

The countries in the bloc account for more than half of the world’s population.

Brics leaders, who are holding a two-day meeting in Rio de Janeiro, have called for reforms to global institutions and positioned the alliance as a platform for diplomacy amid escalating trade conflicts and geopolitical tensions.

A joint statement by finance ministers of the Brics nations on Sunday criticised tariffs as a threat to global economy, bringing “uncertainty into international economic and trade activities”.

Andrew Wilson, deputy secretary general of the International Chambers of Commerce, said it would be challenging for countries to move away from doing business with China.

He told the BBC’s Today programme: “Shifting away from China…in a number of sectors is far more difficult to achieve in the world in practice.

“You look at the dominance China has in a number of sectors – EVs, batteries [and] particularly rare earths and magnets, there are no viable alternatives to China production.”

During the Brics meeting in Brazil, leaders also condemned the military strikes on Iran in June, saying the attacks were a violation of international law.

Over 12 days, Israel and the US struck targets in Iran, including its nuclear facilities before a ceasefire was agreed.

The Brics summit was attended in person by world leaders, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.

China’s President Xi Jinping missed the event for the first time, with Premier Li Qiang standing in for him.

Russia’s President Vladimir Putin, who has an arrest warrant from the International Criminal Court against him over alleged war crimes in Ukraine, attended online.

In 2024, Trump threatened 100% tariffs on Brics countries if they moved ahead with their own currency to rival the US dollar.

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