Trump's Bold Tariff Threats: What It Means for BRICS and India

Trump's Tariff Warning to BRICS Nations

New York: President Donald Trump has reiterated his intention to impose a 10% tariff on countries that are part of the BRICS alliance, claiming that the group aims to undermine the US dollar.

During a Cabinet meeting on Tuesday, Trump stated, "Anyone involved with BRICS will incur a 10% charge," which notably includes India.

In a related trade matter that could impact India, he announced plans for a 200% tariff on pharmaceuticals, although he mentioned a grace period of about a year to allow companies to adjust.

"We’ll give them a certain period of time to get their act together," he remarked regarding pharmaceutical firms.

Last year, India's pharmaceutical exports to the US reached nearly $9 billion.

When a reporter reminded him of his earlier comments about an impending trade deal with India, he clarified that the proposed BRICS tariff would apply to all member nations.

"If they’re a member of BRICS, they’ll have to pay a 10% tariff just for that reason, and they won’t remain members for long," he asserted.

India has expressed its opposition to a BRICS currency intended for trade, which it believes could challenge the dollar's dominance, effectively using its influence to veto the proposal.

External Affairs Minister S. Jaishankar emphasized in March, "We have no intention of replacing the dollar."

He highlighted the dollar's crucial role in global and Indian economic stability, stating, "The dollar as the reserve currency is essential for international economic stability, and we seek more stability, not less."

In a letter to South Africa, a BRICS member, Trump indicated a 30% tariff would be imposed starting next month, without mentioning the BRICS penalty.

He indicated that the BRICS tariff would be implemented "soon."

Despite India's successful efforts to prevent the establishment of a BRICS currency, Trump continued to voice concerns about a supposed conspiracy against the US.

"BRICS was created to harm us and diminish our dollar's status," he claimed.

He expressed his determination to oppose such moves, likening it to losing a war.

"If they want to play that game, I can play it too," he added.

Trump suggested that BRICS is on the verge of disintegration, with only a few countries remaining involved.

"In my view, BRICS is not a serious organization," he stated.

He warned that they aim to replace the dollar as the global standard, asserting, "We will not lose that status."

India's resistance to a BRICS currency stems from concerns over potential manipulation by China.