US President's Warning to BRICS Countries
US President issued a warning to BRICS countries, stating that any nation aligning with the bloc's 'anti-American' policies will face a 10% additional tariff.
Response from BRICS
- BRICS leaders criticized the US President's tariffs as "indiscriminate" and threatening to global economic stability.
- In a joint statement after a summit in Rio de Janeiro, they expressed concerns over unilateral measures that distort trade, inconsistent with WTO rules.
Impact of Tariffs
The expanded BRICS group, including Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE, represents nearly half the global population and around 40% of the world’s GDP.
- The bloc opposes the US's unilateral trade approach, describing the tariffs as "illegal and arbitrary."
- Such tariffs could reduce global trade, disrupt supply chains, and introduce uncertainty into international economic activities.
US Tariff Policy
- In April, a 10% baseline tariff was announced on most imports, with potential increases up to 70% if negotiations fail.
- The BRICS bloc advocates for a WTO-based international trading system, rejecting the US "deal-or-tariff" approach.
BRICS Expansion
Originally formed in 2009, BRICS expanded in 2024 to include new members. This expansion highlights the bloc's growing influence in global trade discussions.
