Trump To Punish BRICS Allies With Extra 10% Tariff Over Bloc’s ‘Anti-American’ Policies: ‘No Exceptions’

Amid a series of new developments in U.S. tariff policy, President Donald Trump on Sunday threatened to impose an additional 10% duty on countries “aligning” with the BRICS group of nations.

"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," Trump said in a post on Truth Social.

The group, comprising Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Indonesia, and Iran, is convening for a two-day summit in Rio de Janeiro, Brazil.

In a statement issued on Sunday, the bloc's leaders voiced "serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules," warning that the "proliferation of trade-restrictive actions" threatens to disrupt the global economy and exacerbate existing economic disparities.

The statement did not directly name the U.S. or Trump. It offered support for fellow member Iran, condemning the recent military strikes on the country.

One of the biggest concerns the U.S. has with BRICS is the group's effort to reduce reliance on the U.S. dollar. If successful, this would weaken the dollar's global influence and diminish the economic leverage the U.S. currently enjoys.

Separately, Trump said the U.S. is close to finalizing several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9.

His additional tariffs, announced in April and scheduled to take effect on July 9, will now come into force on Aug. 1, according to official statements.

Trump has earlier threatened to impose 100% tariffs on BRICS nations if they take steps to undermine the U.S. dollar. The bloc has been exploring several alternatives, including the creation of a “BRICS currency,” greater use of local currencies in trade, and the development of alternative payment systems outside of U.S. control.

At last year’s BRICS summit in Kazan, Russia pushed to accelerate such efforts following Western sanctions imposed after its 2022 invasion of Ukraine by reducing dependence on U.S.-dominated financial infrastructure.

The dollar logged its worst first-half performance this year since 1973, weighed down by concerns over tariffs and growing U.S. fiscal deficits. The greenback has lost more than 10% year-to-date, according to an index that tracks its performance against a basket of currencies, and neared its lowest level since 2021 in early Asian trading on Monday.

In a May note, a former Morgan Stanley currency strategist warned that up to $2.5 trillion in dollar reserves could be dumped by Asian exporters and institutional investors, posing “sharp downside risks” to the currency.

The Invesco DB US Dollar Index Bullish Fund (UUP) has lost over 8% this year, although retail sentiment on Stocktwits remains ‘bullish.’ 

As of 2:35 a.m. ET Monday, S&P 500 and Nasdaq 100 futures fell about 0.40% each, and the Dow futures fell nearly 0.30%. The U.S. stock market has emerged from the slump driven by tariffs in recent months, with the benchmark S&P 500 index hitting a record high last week.

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