Key Points
- US President Donald Trump announces an additional 10% tariff on any country aligning with BRICS “anti-American” policies.
- No exemptions: All BRICS members, including India, face the new tariff threat.
- India’s Prime Minister Modi attends the BRICS summit in Brazil as US-India trade talks remain unresolved.
- Pending US-India interim trade deal faces hurdles, especially in agriculture and dairy sectors.
- Existing 10% US tariff on Indian goods remains; a suspended 26% duty could return if no agreement is reached by July 9.
- US has already doubled tariffs on Indian steel and aluminum to 50%, and vehicles face a 25% duty.
Washington D.C.: US President Donald Trump has escalated global trade tensions by declaring a new 10% tariff on any country that aligns with the BRICS group’s “anti-American” policies. The announcement, made via his Truth Social account, comes as BRICS leaders including India’s Prime Minister Narendra Modi gather in Rio de Janeiro for the group’s 17th summit.
Trump emphasized that there will be “no exceptions” to this rule, targeting all BRICS members equally. The move is seen as a direct response to the bloc’s growing influence and its calls for reforms in global institutions, as well as criticism of US trade practices.
Implications for India: Trade Uncertainty Deepens
India, a key BRICS member, finds itself in a delicate position. Prime Minister Modi’s presence at the BRICS summit coincides with unresolved trade negotiations between India and the US. India has set clear boundaries in sensitive sectors such as agriculture and dairy, insisting these areas are non-negotiable in any interim trade arrangement.
The fate of the interim trade deal now rests with Washington. If both sides can resolve outstanding issues, an agreement could be announced before the July 9 deadline, which marks the end of a 90-day suspension on a previously announced 26% additional US tariff on Indian goods. However, the baseline 10% tariff remains in effect, and failure to reach a deal could see the higher duties reimposed.
The Tariff Timeline: What’s at Stake
- April 2, 2025: US imposes a 26% additional tariff on Indian products, but implementation is paused for 90 days.
- June 4, 2025: US doubles tariffs on steel and aluminum imports from India to 50%, impacting $4.56 billion in exports.
- July 9, 2025: Deadline for resolving US-India trade talks; if no deal, suspended tariffs could be reinstated.
- Ongoing: 10% baseline US tariff on Indian goods remains in place.
India’s Commerce Minister Piyush Goyal has stated that national interest will drive any agreement, not deadlines, and that India seeks a fair deal that protects its domestic industries.
Global Impact: Letters, Deadlines, and the BRICS Response
Trump’s administration is sending out tariff notification letters to around 100 countries, with the first batch targeting 10 to 12 nations. The president hinted that tariffs could rise even further potentially up to 70% if countries do not finalize trade agreements by July 9.
The BRICS bloc, which now includes Brazil, Russia, India, China, South Africa, and new members like Saudi Arabia and the UAE, has condemned Trump’s tariff threats, calling them “unilateral” and “distorting to global trade.” The group is also pushing for alternatives to the US dollar and reforms to international financial institutions.
Table: Key Tariffs Affecting India–US Trade
| Product Category | Existing US Tariff | Additional/Suspended Tariff | Status as of July 7, 2025 |
|---|---|---|---|
| General Indian Goods | 10% | 26% | 26% suspended until July 9; 10% in force |
| Steel & Aluminum | 25% → 50% | — | 50% in force since June |
| Vehicles | 25% | — | 25% in force |
Trump’s new 10% tariff threat against BRICS nations marks a significant escalation in US trade policy and puts India in a challenging position as it juggles BRICS commitments and crucial trade talks with Washington. With the July 9 deadline looming, the outcome of US-India negotiations will shape the future of bilateral trade and could set the tone for global commerce in the months ahead.
