Saturday, March 29, 2025
Washington | July 7, 2025
In a bold and controversial move, former U.S. President Donald Trump has threatened to impose a 10% additional tariff on countries aligning themselves with the BRICS alliance, which includes India. In a recent post on his social media platform, Truth Social, Trump warned that any country that supports what he described as BRICS’ “anti-American policies” would face higher tariffs.
India, a founding member of BRICS, recently reaffirmed its participation in the group. Prime Minister Narendra Modi attended the 17th BRICS summit in Rio de Janeiro, Brazil, further deepening India’s engagement with the bloc. Trump’s statement has now raised concerns in Indian policy circles about the potential economic impact of this warning.
Trump’s message read: “Any country siding with BRICS’ anti-U.S. policies will face a 10% additional tariff. There will be no exceptions. Thank you for paying attention to this matter.”
Trump’s threat poses a significant challenge for India, which is currently in the midst of key trade negotiations with the U.S. The two nations have been discussing an interim trade deal, with particular focus on agriculture and dairy sectors. India has already communicated its red lines on these matters, and the final steps are pending from the American side.
Sources indicate that if discussions progress smoothly, an interim agreement could be signed before July 9. However, Trump’s latest statement could cast a shadow over these efforts.
Adding to the complexity, the U.S. had earlier imposed a retaliatory 26% duty on select Indian goods on April 2. Though this duty was deferred for 90 days, a base duty of 10% remains in effect. India has been lobbying for a complete waiver of the 26% tariff. Failure to reach an agreement could result in its reinstatement.
Disagreements between India and the U.S. extend beyond BRICS-related tensions. There remain unresolved issues over tariffs on steel (50%), aluminum (50%), and vehicles (25%). A recent Indian delegation returned from Washington after a fresh round of trade negotiations, but no final deal was reached.
Trump has been vocal about reviving aggressive tariff strategies if re-elected. Last week, he revealed that his administration was preparing letters to 10-12 countries, detailing planned retaliatory tariffs. He stated the process would be completed by July 9. The warning to BRICS-aligned nations is part of this larger economic agenda aimed at protecting U.S. interests globally.
India now finds itself at a crossroads — balancing its strategic role within BRICS while maintaining its crucial economic ties with the U.S. The coming days will be vital in determining how this geopolitical and trade tension unfolds.
