President Donald Trump proposed a new 10% tariff on any product from countries that are part of the BRICS bloc, chucking a fiery new grenade into the global economy as the July 9 trade deadline moves closer. In typical Trump fashion, the shocking announcement was issued late Sunday night via an all-caps Truth Social post: “Any country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% tariff. There will be no exception.”
The announcement, massive in tone yet unclear in specifics, has economists clenching spreadsheets and diplomats shocked.
Two days before the deadline for settling individual trade deals with the United States, Donald Trump revealed in a follow-up post that his administration would start sending out official tariff letters to these different countries on Monday, July 7, at noon EST.
Which countries are most likely to pay the price? According to DW.com, the ten nations that make up the current BRICS group (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates) are an economic alliance that, at the moment, accounts for more than 40% of the worldwide population and a third of its GDP.
Is Donald Trump’s Tariff Threat a Bluff or Billion-Dollar Blow?
Trump’s tariff news was not made at random. Trump is strongly hitting back as BRICS leaders meet in Rio de Janeiro over the weekend to discuss strategies for a “post-Western” economic future. His threats follow a volatile few days that had a bizarre speech about divine plumbing and a spiraling balcony speech…with a visibly bored Melania Trump.
According to Donald Trump, “water comes down from heaven.”
Still, the most recent tariffs might have more realistic consequences. Donald Trump’s new tariff regime, if put into effect, could cost an enormous number of American employers (those with $10 million to $1 billion in yearly revenue) more than $82.3 billion, according to a new study by the JPMorgan Chase Institute.
Trump shows his failure to understand how tariffs on imported goods affect prices for consumers and insists that extremely high tariffs would incentivize companies to build factories in the US (they would not).
The Bloomberg interview proved Trump is a terrible businessman. pic.twitter.com/g2ZGUFSlKM
— Leia (@TheSWPrincess) October 15, 2024
This applies to businesses like Costco, Walmart, and Amazon that piled up inventory during the Joe Biden era to avoid tariffs placed on them by Donald Trump.
Moreover, information from Trump’s earlier trade wars goes against his claims that the burden will be put on foreign manufacturers. Usually, US companies and, eventually, customers bear the full burden of taxes on imports. Social media users were quick to voice their opinions on it. One X user yelled, “This buffoon is the president of the United States.” Someone else brought up the fact that Trump’s administration had earlier imposed tariffs on a penguin-only island.
BRICS Flexes While the US Fumes
The future of world economic power is at risk, not just tariffs. BRICS has established itself as a counterbalance to Western-led structures such as the World Bank and the IMF since it was formed in 2009.
According to data from the BRICS website, the bloc now controls an incredible 73% of rare earth materials and an estimated 40% of the world’s oil, which includes Iran and the United Arab Emirates.
This week’s summit, hosted by Brazil, which is the BRICS country with the rotating presidency in 2025, has three key objectives: strengthening economic ties, creating tech alliances, and reducing dependence on the US dollar.
O BRICS se reúne, mais uma vez, no Brasil. Com quase metade da população mundial, somos responsáveis por 40% da riqueza produzida no planeta. Com a entrada de novos membros, estamos fortalecendo o Sul Global e ampliando a voz dos países emergentes.
Sob a presidência brasileira,… pic.twitter.com/kS6iWM58Ke
— Lula (@LulaOficial) July 6, 2025
The BRICS nations’ internal trading has reached more than $1 trillion, as reported by DW.
But this unity might be put to the test by Donald Trump’s tariff blitz. Before risking access to the U.S. market, certain countries competing for BRICS backing may think twice. Others could call Donald Trump’s bluff, speculating that execution may be limited by the current political and legal chaos around his presidency.
