Washington (TDI): On one side when BRICS’ countries are having discussions regarding the trade deals, planning investment initiatives and are calling out tariffs as an impediment to the global trade and supply chains, Trump has threatened, via social media, to put an extra 10% tariffs on countries aligning with the ‘Anti-American policies of the BRICS.
This announcement came in the backdrop of 17th BRICS Summit in Brazil and Trump’s July 9 Tariff deadline primarily. Interestingly, BRICS also includes countries like India which is not only a major strategic partner of the US but also currently in talks with the Trump administration for important trade deals. Therefore, some are calling it ‘yet another’ vague and unpredictable statement by Trump.
What is BRICS?
BRICS is a group of developing states that represent, as claimed by its members, almost a half of the world population and shares nearly 40% of global GDP.
The group includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran. However, several more countries have shown their interest to be a part of the bloc, including Pakistan.
The grouping describes itself as a “political and diplomatic coordination forum for countries from the Global South and for coordination in the most diverse areas.” It also sees itself as a counterweight to Group of Seven (G7), a west-led economic bloc.
BRICS founding members began their informal meetings regarding the group in 2006 on the sidelines of United Nations General Assembly and held their first official summit in 2009. Since then its leaders gather every year for their annually scheduled summit.
What more to know about Trump’s tariff threat
In response to this Trump’s threat of extra 10% Tariff, a spokesperson of the Chinese Foreign Ministry remarked that China opposes any action of using tariffs as a “tool to coerce others.” India’s concerned spokesperson was also asked to comment on it which they refused to do for now.
Additionally, as the joint declaration of BRICS leaders showed that how they are looking to collaborate more on reducing the impediments to trade, Trump’s threat for extra 10% duty will most likely push them to intensify their efforts for a alternative economic system which is more predictable and reliable for them.
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