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Trump Labels BRICS ‘Anti-American’, Threatens 10% Tariff for Defying Dollar

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2 months ago

July 7, 2025

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With BRICS expanding and experimenting with alternative trade systems, Trump escalates his tariff war and India finds itself walking a tightrope.

In a fresh shot fired at the growing BRICS coalition, former US President Donald Trump warned that any country aligning with the bloc’s so-called “anti-American policies” will face an additional 10% tariff, reviving his familiar hardline trade rhetoric just as global markets brace for renewed economic turbulence.

Trump’s threat, posted Sunday night on Truth Social, comes amid escalating tensions over BRICS’ ongoing exploration of alternative trade systems, including greater use of local currencies and talks of a potential BRICS reserve currency.

“Anti-American Policies”? A Global Rebalance in Motion

Trump’s comments refer to BRICS’ broader push for economic independence from the US dollar, seen by many analysts as a pragmatic response to the West’s past weaponisation of global financial infrastructure.

Countries like Iran and Russia, previously cut off from SWIFT, have been eager to move away from dollar-based systems. China and Russia already settle much of their trade in yuan and roubles, while India has quietly set up Vostro accounts and local currency agreements to ease trade with partners facing dollar shortages.

But BRICS isn’t trying to kill the dollar, at least, not officially.

A 2024 report from the group stated clearly:

“We do not seek to replace the US dollar as a medium of exchange… we aim to offer a viable alternative that aids global efficiency.”

Still, Trump’s response has been blunt:

“If they even think about reducing use of the dollar, they’ll get a 100% tariff,” he said previously.

India’s Balancing Act: De-risk, Not De-dollarise

Of all the BRICS members, India has perhaps been the most nuanced. At a Washington DC think tank event in late 2024, External Affairs Minister S. Jaishankar pushed back against claims of de-dollarisation.

“We have never actively targeted the dollar… This is about ensuring we can trade with partners who may not have access to dollars,” Jaishankar explained.

Likewise, former RBI Governor Shaktikanta Das clarified in December that India’s trade measures were about “de-risking,” not de-dollarising. Das also poured cold water on the idea of a BRICS currency, citing geographical spread and economic imbalance, particularly with China’s growing dominance.

India’s refusal to use Chinese yuan for Russian oil even while yuan trade booms in Russia, further underscores New Delhi’s discomfort with Beijing’s ambitions.

Who’s in BRICS Now? And Why It Matters

The BRICS group, once an acronym for five fast-growing economies, has expanded significantly. By early 2025, it included Egypt, Ethiopia, Iran, UAE, and Indonesia, making ten members in total. Together, they represent:

45% of the world’s population
Over 35% of global GDP

Their growing economic influence combined with efforts to bypass the dollar, has raised alarm bells in Washington.

But unity within BRICS is far from perfect. At the 2024 summit in Kazan, Russia, members clashed over Middle East policy, and China’s dominance within the bloc remains a sticking point, especially for India.

What This Means for Global Trade

Trump’s aggressive posturing could have serious consequences. The US dollar hit a three-year low recently, partly due to fears of a renewed trade war. Markets are already jittery as Trump’s August 1 deadline for new tariffs approaches.

Analysts warn that blanket tariffs on a bloc that includes major economies like India, China, and Brazil could backfire, inflaming inflation and disrupting global supply chains, particularly in energy, tech, and food exports.

A World Dividing Again?

Trump’s threats are not just economic, they’re political. They reinforce a growing East-West divide, where the Global South is beginning to explore its own trade and financial systems.

BRICS isn’t perfect, and its members don’t always agree. But what unites them now is a shared urgency to build alternatives, not just to the dollar, but to a world where Washington alone calls the shots.

As Trump doubles down, BRICS seems more committed than ever to forging a parallel path. Whether that’s “anti-American” or simply “post-American” depends on who you ask.