President Donald Trump escalated his trade strategy on Sunday, July 6th, by announcing that he would impose a new 10% tariff on imports from countries supporting the BRICS economic alliance. The decision, announced via Truth Social, follows ongoing tensions surrounding the July 9 deadline for reciprocal trade deals under his administration’s tariff framework. Trump stated that countries “aligning themselves with the anti-American policies of BRICS” would face the penalty without exception. Tariff letters were sent out on Monday, July 7th to nations.
The BRICS bloc—now comprising Brazil, Russia, India, China, South Africa, Egypt, Iran, Indonesia, Ethiopia, and the UAE—issued a joint declaration at its summit in Rio de Janeiro expressing concern over U.S. tariffs. The statement cited “serious concerns” about unilateral trade measures. A recent IMF analysis of tariff impacts suggests such measures could dampen global economic activity.
Treasury Secretary Scott Bessent warned that the tariff pause, which began April 2, would expire on July 9, with final rates effective August 1. “If you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level,” Bessent said Sunday. Trump confirmed that 10 to 15 letters would be sent this week advising countries of their new tariff rates if no deal is reached.
As of July 7, only the United Kingdom, Vietnam, and China have formal trade arrangements with the U.S. Under the Vietnam agreement, goods will be taxed at 20%, while U.S. exports face zero tariffs. China accepted a reduction of U.S. tariffs to 30% and suspended non-tariff retaliation. Details from the U.S. Trade Representative confirm these deals’ scope and timelines.
BRICS has grown increasingly critical of the U.S. trade stance. In 2024, Trump threatened 100% tariffs if BRICS pursued a joint currency. While that proposal remains inactive, the group continues pushing for multipolar financial systems. According to the Carnegie Endowment’s briefing, BRICS’s moves could shift long-term trade alignment.
Commerce Secretary Howard Lutnick said most countries would receive either a letter or a deal by the July 9 cutoff. “This is when it’s happening,” Bessent added. China’s Foreign Ministry responded, stating, “We consistently oppose tariff wars and trade wars…tariffs as a tool for coercion and pressure.” Trump maintains that the tariffs are a necessary tool for U.S. leverage.
Economic experts are divided. The International Chamber of Commerce noted challenges in decoupling from China due to its dominance in sectors like rare earths and batteries. “Shifting away from China…is far more difficult to achieve in the world in practice,” said Andrew Wilson. The administration insists inflation remains under control despite the tariffs, citing a 0.1% rise in wholesale prices in May.
