Leaders gathered for a group photo during the BRICS summit in Rio de Janeiro on July 6, 2025. Getty Images
Tariff Warning Ahead of July 9 Deadline
President Donald Trump has warned that the U.S. will impose new tariffs on any country that supports what he calls the “anti-American” policies of the BRICS group. Starting Monday, letters will be sent to many countries about tariff rates, ahead of an important July 9 deadline. Trump posted on Truth Social that any country siding with BRICS policies will face an extra 10% tariff, with no exceptions.
What Is BRICS?
BRICS is a group of emerging economies including Brazil, Russia, India, China, and South Africa. Recently, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates joined the group, which also has several partner countries. The group pushes for a shift from a Western-led world order to a multipolar global system.
BRICS Reacts to Tariffs
At a summit in Brazil, BRICS leaders expressed “serious concerns” about rising tariffs, clearly criticizing U.S. trade policies without naming Trump directly. Brazil’s President Lula also spoke against increasing military spending, saying, “It is always easier to invest in war than in peace.”
Tariff Letters and Possible Rates
Treasury Secretary Scott Bessent said the U.S. might return tariffs to April levels if countries don’t make trade deals soon. Some tariffs could reach as high as 70%, but major partners won’t face the highest rates. Trump said letters about tariffs will be sent out to many countries starting July 7, with most done by July 9.
Trade Talks and Deals
Trump mentioned ongoing discussions with various countries and expects to finalize many deals soon. Commerce Secretary Howard Lutnick confirmed tariffs would come back on August 1 if no agreements happen. Bessent said about 100 letters will go to smaller countries, many already paying a 10% tariff baseline.
Background on Previous Tariffs
In April, Trump paused many tariffs for 90 days but kept high tariffs in place overall. He claims to have made 200 trade deals, but only three countries have announced official agreements so far: the UK, China, and Vietnam.
Impact on BRICS and Global Trade
Trump’s new tariff threat adds tension to the trade scene as BRICS countries work to strengthen their ties and reduce reliance on the U.S. dollar. BRICS has talked about using their own currencies more for trade, but the idea of a BRICS currency is still far off.
Economic Effects of Tariffs
Experts warn that tariffs could raise costs for U.S. consumers. Some companies, like Walmart, plan to increase prices despite Trump’s pushback. Treasury officials say tariffs mainly hurt the countries targeted, not U.S. consumers. Inflation data shows some price increases, but officials call warnings “misinformation.” Critics argue tariffs could hurt the U.S. economy by raising prices and reducing competitiveness.
