Trump threatens 10% extra tariff on any country aligning with BRICS “anti‑American” policies

President Donald Trump issued a warning on July 7 via Truth Social that any country aligning itself with the “anti‑American policies of BRICS” will be hit with an extra 10% tariff, with no exceptions.

The announcement coincides with the BRICS summit in Rio de Janeiro, where leaders condemned rising global tariffs as harmful to trade, and emphasized BRICS as a modern successor to the Non‑Aligned Movement.

Brazil’s President Lula noted the bloc now represents over half the world’s population and 40% of global GDP.

Trump’s extra tariff threat adds to his existing base and reciprocal tariff structure—originally unveiled on April 2 under the “Liberation Day” plan—scheduled to take effect at varied rates by August 1, contingent on whether countries finalize trade agreements by July 9.

Letters detailing the tariffs are to be dispatched July 7.

The announcement rattled markets across Asia: the Indian rupee weakened to ₹85.72 against the dollar, the Sensex and Nifty dropped, and Asian equities and futures fell amid concerns over unclear trade policy direction.

No specifics were provided on which policies or actions would trigger the extra tariff, leaving ambiguities for major US. trading partners. BRICS-member India, as well as the EU and Japan, now face the risk of both baseline and BRICS-related duties.

The BRICS statement directly criticized unilateral measures, cautioning that escalating tariffs would disrupt global trade flows and undermine WTO regulations.

Economists warn that the layered tariffs could suppress economic growth, increase global inflation, and place strain on markets—while complicating US negotiations with key trade partners.