Trump Issues Tariff Warning to BRICS, Threatening 10% Additional Levies

Trump to Mail Tariff Letters, BRICS Hit by Extra 10%

Moving a step further, US President Donald Trump has tweeted that his administration will start issuing tariff letters today, to several countries all over the world. The action also serves a strong message to BRICS partners that any country that is viewed to agree with the so-called anti-American policies of the block will be forced to pay extra 10 percent duty on their exports to the US.

President Trump made this announcement through the use of social media and indicated very clearly that, any Country that will align itself with the Anti-American policies of BRICS, will be charged with an ADDITIONAL 10% Tariff. No exceptions to this policy will be other than zero.” Although the exact meaning of the term, as applied to the anti-American policies, has not been clearly established yet, the fact that this statement was made during the ongoing BRICS summit in Brazil is surely an indicational sign of the direct reaction to the latest statements made by the bloc.

The BRICS leaders released a joint declaration at the summit describing their serious concern over the increase in unilateral tariff and non-tariff barriers which distort trade and are inadmissible with the WTO rules. Though the sentence did not mention the US explicitly, it was generally known to all as a not so subtle swipe at the Washington protectionist trade agenda. More over, in the BRICS communique there was a condemnation of American-Israeli attacks on Iranian nuclear and military installations, which were termed as illegal and withdrawal of the Israeli forces in Gaza. All these accusations must have stirred such a heated debate on the part of President Trump.

The tariff letters, whereof some are said to be already signed and ready, will be despatched to 12 or more countries. These will specify exact rates of tariffs that are to be imposed and many of these will go into effect on August 1st. This is coming after a three months wait on increased duties imposed on earlier tariff announcements that shook financial markets.

In the coming days, the world will learn more about the total ability to have these tariffs applied and how swift the reactions will be from the countries abound. Likely, this will complicate international trade relations and lead to more retaliatory measures, and volatility in global markets.

BRICS countries have a major challenge with the area of an additional new 10% tariff. The subsequent uncertainty that is now created means that countries such as India who were negotiating a bilateral trade agreement with the US will now consider new tariffs a risk inherent in even proposing an agreement. Earlier this year, the US had threatened a 100% tarr-Found major trading partners such as BRICS if balanced also their plans were to remove the use of the US dollar away from bilateral trade. Clearly that was signal of a more US strategic objective and not just on the basis of just an imbalance of trade.

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BRICS represents almost half of the world population and a substantial portion of the world’s economic conditions. They believe in a rules-based international trading system as laid out a trading system as laid out by the WTO. They believe unilateral tariffs complicate global trading and supply chain issues. What is evident is that the gap between the US “deal-or-tariff” way of course is a fanatically different approach from the multilateral attitude of many international organizations and newer countries that will serve as”solutions” to international trade dilemmas.

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