U.S. Tariffs on BRICS Nations
The U.S.A. has announced a 10% tariff on BRICS nations and a potential 200% levy on pharmaceutical imports. This move signifies a shift in U.S. trade policy, aiming to exert influence through tariffs.
Impact on India
- India recently submitted a trade offer to the U.S. covering goods worth $150-200 billion, now at risk due to tariff threats.
- U.S. imports from BRICS totaled $886 billion in 2024, with potential additional duties of $88 billion from the 10% tariff.
- India exported pharmaceuticals worth $9.8 billion to the U.S. in 2024-25, a 21% increase from the previous year.
- The 200% tariff on pharmaceuticals could disrupt supply chains and affect American healthcare costs.
- India's copper exports to the U.S., valued at $360 million, are also threatened by a 50% tariff.
Broader Implications
- BRICS accounts for 32% of global GDP and 40% of the global population, challenging Western dominance.
- The U.S. aims to deter BRICS expansion and dollar decoupling through tariffs.
- The move could unify BRICS and accelerate shifts away from U.S.-centric trade frameworks.
- Trade is increasingly seen as a tool for power and sovereignty rather than a mere transaction.
Conclusion
This tariff strategy by the U.S. could isolate it and promote the multipolar world order it is resisting. India faces a diplomatic challenge, balancing BRICS solidarity and its U.S. partnership.
