NEW YORK – U.S. President Donald Trump made a surprise announcement that he will once again apply a 10% tariff to all BRICS nations, which comprise Brazil, Russia, India, China, and South Africa. Addressing reporters at a Cabinet meeting, Trump said, “Anybody that’s in BRICS is getting a 10% charge,” making it clear that this will be applied to India as well directly.
The President’s comments come amid ongoing tensions regarding international trade and currency stability. Trump accused the BRICS nations of attempting to undermine the U.S. dollar, claiming the group was “set up to degenerate our dollar.” He expressed his determination to protect the dollar’s status as the world’s reserve currency, stating, “We’re not going to lose the standard.”
Pharmaceutical Tariff Threat
Apart from the BRICS tariff, Trump threatened a whopping 200% tariff on pharma, which he is going to impose in the near term. He said pharmaceutical firms will be given “about a year, year and a half” to make changes before the tariffs kick in. This could have major consequences for India, which shipped close to $9 billion worth of pharma last year to the U.S.
Trump’s comments are made in the backdrop of India being vocal about its disapproval of a BRICS currency that might rival the dollar. In the past, External Affairs Minister S. Jaishankar has stated, “I don’t think there’s any policy on our part to replace the dollar,” reiterating the role of the dollar in ensuring global economic stability.
Concerns Over BRICS Currency
In spite of India’s attempts to stop the emergence of a BRICS currency, Trump remains skeptical about the intentions of the group. He said, “BRICS was set up to hurt us,” and threatened that the U.S. would prevent any nation from replacing the dollar. He described the BRICS alliance as “not a serious set-up,” indicating that it is about to disintegrate.
The suggested tariffs as well as Trump’s belligerent approach toward BRICS members have come as a surprise to economists and political analysts, and they caution that the moves could increase trade tension and have implications for the global markets. As events unfold, the world will be watching closely to see how these tariffs affect the dynamics of international trade.
