Trump threatens extra 10% tariff on countries 'aligning' with BRICS policies; what irked US president

US President Donald Trump on Monday threatened to impose an additional 10% tariff on any country aligning itself with the BRICS bloc’s “anti-American policies,” warning there would be no exceptions to the measure.

“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. Thank you for your attention to this matter!” Trump posted on X.

What irked US president

His remarks came a day after BRICS nations issued a joint declaration condemning Trump’s tariff measures and attacks on Iran, though it refrained from naming the US president directly.

The group’s 31-page declaration said such restrictions were “inconsistent with WTO rules,” and warned they could reduce global trade, disrupt supply chains and increase uncertainty.

BRICS, originally formed by Brazil, Russia, India, China and South Africa, last year expanded to include Indonesia, Iran, Egypt, Ethiopia, and the United Arab Emirates.

The declaration also criticised Israel’s military actions in the Middle East and condemned recent Ukrainian attacks on Russia.

At the time, he wrote on X: “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER.”

He warned that countries pursuing a BRICS currency or dollar alternatives would face economic consequences, including being cut off from the US market.

“We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” he wrote.

However, then Reserve Bank of India Governor, Shaktikanta Das, had dismissed suggestions that India was pursuing de-dollarisation, saying instead that local currency settlement agreements were aimed at de-risking trade.

“There is no step which we have taken that specifically wants to de-dollarise,” Das said. “Dependence on one currency can be problematic at times because of appreciation or depreciation.”

He added that while the idea of a BRICS currency was discussed, no decision was made.

“Unlike the Eurozone, which has a single currency and geographical contiguity, BRICS countries are spread all over. That also has to be kept in mind,” Das said.