Trump Escalates Trade War with 10% Tariff Threat Targets BRICS
President warns of additional levies on any nation aligning with "Anti-American" BRICS bloc during Rio de Janeiro gathering
US President Donald Trump has threatened to impose an additional 10% tariff on any country aligning itself with BRICS policies, escalating tensions with the expanding bloc of emerging economies during their annual summit in Rio de Janeiro. Trump's declaration on Sunday came as BRICS leaders, representing over half the world's population and 40% of global economic output, criticized his trade policies and called for reforms to international financial institutions.
"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 stated on his Truth Social platform. The threat emerged during the 17th BRICS summit, held July 6-7, 2025, where leaders from eleven member nations gathered to address mounting trade tensions and geopolitical challenges.
BRICS Summit Delivers Unified Response to US Trade Aggression
The timing of Trump's threat proved particularly provocative, coming as BRICS nations were already voicing strong criticism of American trade policies. The summit, which brought together around 4,000 participants from 37 nations according to Brazilian officials, served as a platform for coordinated resistance to what the bloc views as unilateral economic coercion.
Pedro Vormittag, President of this year's BRICS Committee, emphasized the summit's historic significance. "It is hard to think of a time in history over the past decades in which the agenda was so ambitious, and the answers were so urgent. No matter what the outcome is going to be, it is going to be a historic meeting," he told SBS News.
The expanded BRICS membership now includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates, and Indonesia. This expansion has increased the bloc's combined population to approximately 3.5 billion people, or 45% of the world's inhabitants, with economies worth more than $28.5 trillion.
"There is a very big concern about trade. In other words, how is it that the countries that are part of BRICS are going to improve and actually increase the level of trade and the level of business at large that they can have with each other."
— Pedro Vormittag, President of BRICS Committee, as reported by SBS News
Rio Summit Addresses Critical Global Challenges
Brazil, holding the rotating BRICS presidency, identified six strategic priorities for the 2025 summit: global health cooperation; trade, investment, and finance; climate change; AI governance; reform of the multilateral peace and security system; and institutional development within BRICS.
The summit's agenda reflected growing concerns about Western dominance in global institutions. According to the BBC, BRICS countries argue that Western nations dominate important global bodies such as the International Monetary Fund and the World Bank, and the bloc wants to see "a greater voice and representation" for emerging economies.
Russian President Vladimir Putin, participating via video link due to war crimes charges related to Ukraine, joined the plenary session on 'Strengthening Multilateralism, Economic-Financial Affairs, and Artificial Intelligence'. The Russian delegation was led by Foreign Minister Sergey Lavrov, while Chinese President Xi Jinping's absence marked a notable diplomatic development.
Security Measures Reflect Summit's Global Importance
Rio de Janeiro deployed massive security resources to protect the high-profile gathering. According to SBS News, some 17,000 soldiers and police officers were stationed throughout the city to ensure the safety of world leaders and delegates.
The security operation underscored the summit's significance as a platform for challenging Western-dominated international order. Rio Mayor Eduardo Paes highlighted the city's growing role as a diplomatic hub, stating: "Rio is once again the capital of the world—hosting the G20 last year, now BRICS, and who knows, maybe I'll get the presidential decree signed to make Rio the honorary capital of Brazil".
Brazil's Foreign Minister Mauro Vieira had announced the summit venue and dates in February, confirming that Rio would "welcome in the city the leaders of the 20 countries that are full members and partners of BRICS".
Economic Powerhouse Challenges Western Financial Architecture
The summit highlighted BRICS' growing economic clout and its potential to reshape global financial systems. With Iran, Saudi Arabia, and the UAE as members, BRICS countries now produce about 44% of the world's crude oil, according to BBC analysis.
The bloc's economic influence extends beyond energy. In 2014, BRICS nations established the New Development Bank to provide alternative financing for infrastructure projects. By the end of 2022, the bank had provided nearly $32 billion to emerging nations for roads, bridges, railways, and water supply projects.
The BRICS Business Forum, held at Rio's Museum of Modern Art, brought together business leaders and government officials to discuss expanding south-south economic cooperation, trade in digital economy, investment flows, artificial intelligence regulation, and climate financing frameworks.
"We value the interest of other countries in building a partnership with BRICS. More countries will join in the future after the core nations agree on criteria for membership."
— South African President Cyril Ramaphosa, as reported by BBC
Partner Country Framework Expands BRICS Influence
The 2025 summit marked a significant expansion of BRICS influence through its new partner country framework. According to multiple sources, the bloc welcomed 11 new partner countries, including Indonesia, Belarus, Nigeria, Thailand, Vietnam, Kazakhstan, and Cuba.
This expansion strategy allows broader participation without the complexities of full membership. Current partner countries include Bolivia and Cuba from Latin America, along with Belarus, Kazakhstan, Malaysia, Thailand, Uganda, Uzbekistan, and Nigeria.
The partnership framework represents BRICS' effort to build a broader coalition of developing nations while maintaining decision-making efficiency among core members. According to CryptoRank, Brazil President Luiz Inacio Lula Da Silva had specifically invited Mexico, Colombia, and Uruguay to the July summit, though their participation status varied.
Artificial Intelligence and Digital Governance Take Center Stage
The summit placed unprecedented emphasis on artificial intelligence governance and digital transformation. Brazil's BRICS priorities included AI governance as one of six key areas, reflecting growing concerns about technological sovereignty and the dominance of Western tech companies in AI development.
The BRICS Business Council identified "Innovation and Digital Transformation" as a core pillar, focusing on advancing digital transformation agenda and promoting regulatory cooperation with emphasis on artificial intelligence, automation, and the data economy.
Working groups addressed frameworks for responsible AI development and deployment, digital trust, and innovation and technological collaboration within BRICS. The bloc positioned itself as a counterweight to what it views as AI development concentrated among wealthy nations.
Climate Finance and Sustainable Development Agenda
Climate change featured prominently in summit discussions, with leaders emphasizing the need for climate financing frameworks and sustainable development cooperation. The BRICS Business Council prioritized "Energy Transition and Sustainable Development," promoting decarbonization, renewable energy advancement, and clean technologies.
The summit's timing, just months before the COP30 climate conference scheduled for November in Belém, Brazil, provided additional urgency to climate discussions. BRICS leaders positioned their bloc as a crucial player in mobilizing climate finance and ensuring equitable energy transition for developing nations.
Brazilian leadership emphasized circular economy and bioeconomy initiatives, reflecting the country's unique position as both a major agricultural producer and environmental steward. The summit addressed energy transition and climate sustainability as interconnected challenges requiring coordinated BRICS response.
Geopolitical Tensions and Regional Conflicts
The summit unfolded against a backdrop of escalating global tensions, with BRICS leaders addressing recent military conflicts and geopolitical challenges. The bloc's joint statement is expected to address various regional conflicts while maintaining the diplomatic balance necessary for consensus among diverse member nations.
The absence of key leaders like Chinese President Xi Jinping and the virtual participation of Russian President Putin highlighted internal challenges facing the bloc. These diplomatic absences occurred as BRICS seeks to project unity in the face of increasing pressure from the United States and Western allies.
The summit's approach to Middle East conflicts and the Ukraine war required careful diplomatic navigation, given the varying positions of member nations on these issues. BRICS leaders sought to maintain bloc cohesion while addressing legitimate security concerns of individual members.
Economic Integration and Trade Facilitation Initiatives
BRICS leaders emphasized removing trade barriers and fostering economic integration to build resilience against supply chain disruptions. The summit addressed creating "a more dynamic and accessible business environment benefiting companies of all sizes and sectors within the group," according to the BRICS Business Council framework.
Trade facilitation and economic integration within BRICS featured prominently in working group discussions. Leaders explored automation and regulatory harmonization to improve trade efficiency while building sustainable and resilient supply chains.
The bloc's emphasis on intra-BRICS trade reflects growing concerns about economic dependence on Western markets and institutions. Summit participants discussed mechanisms to increase trade volumes and business cooperation among member nations while reducing reliance on dollar-denominated transactions.
Future Implications and Global Power Dynamics
The 2025 BRICS summit represents a pivotal moment in global power dynamics, with the expanded bloc positioning itself as a viable alternative to Western-dominated international institutions. The summit's outcomes will influence global governance, trade patterns, and geopolitical alignments in coming years.
Trump's tariff threat, combined with BRICS' unified response, suggests an intensifying economic confrontation between the United States and the developing world. The bloc's ability to maintain cohesion while implementing concrete cooperation mechanisms will determine its effectiveness as a counterweight to Western influence.
The expansion of BRICS membership and partnership frameworks signals growing dissatisfaction with existing international order among developing nations. The bloc's success in translating declarations into actionable policies will shape its credibility as an alternative governance platform.
The summit's emphasis on technological sovereignty, climate leadership, and financial independence reflects BRICS nations' determination to challenge Western dominance across multiple spheres. The coming months will test whether the bloc can transform ambitious declarations into concrete achievements while navigating internal differences and external pressures.
As BRICS leaders return to their capitals, the immediate focus shifts to implementing summit commitments while managing escalating tensions with the United States. The bloc's ability to demonstrate practical cooperation and tangible benefits for member nations will determine its long-term viability as a force for global governance reform.