Trump Targets BRICS-Aligned Nations with New 10% Tariff Threat

US President warns of sweeping trade penalties—investors brace for global market volatility

Trump Announces Tariffs on BRICS Allies

US President Donald Trump has announced a fresh 10% tariff on countries aligning with the BRICS bloc, intensifying global trade tensions. The move, posted on Truth Social, marks another aggressive step in Trump's protectionist trade agenda ahead of the 2025 US election.

“Any country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff. There will be no exceptions,” Trump declared.

What Is BRICS and Why Is It Targeted?

The BRICS bloc—originally comprising Brazil, Russia, India, China, and South Africa—has expanded to include Egypt, Indonesia, Iran, Saudi Arabia, and the UAE.

The group has explored developing alternative trade systems to reduce dependence on the US dollar, drawing criticism from Washington. Although BRICS recently stepped back from launching a unified currency, the group's push for non-Western economic alliances continues to unsettle US policymakers.

Tariff Timeline and Scope

Trump stated that formal notices would be issued to targeted countries starting from 12:00 PM ET (4:00 PM GMT) on Monday, July 7. This comes just weeks before a previously announced August 1 deadline, replacing an earlier July 9 target for new bilateral trade deals.

So far, only the UK, China, and Vietnam have reached updated agreements with the US.

Market Impact: What This Means for Investors

Short-Term Volatility Expected

The announcement could trigger increased volatility in global markets, particularly across:

• Emerging markets tied to BRICS
• Commodities, especially oil and metals
• Currency markets, where the US dollar may gain as a safe haven

Pressure on Global Supply Chains

Export-heavy BRICS economies, especially India, China, and Brazil, may face headwinds. Multinationals relying on raw materials and components from these nations could see rising costs, potentially hitting profit margins in tech, automotive, and manufacturing sectors.

Opportunity in Safe-Haven Assets

Investors may look to gold, US Treasuries, and defensive stocks as safe havens while assessing longer-term geopolitical shifts.

Geopolitical Risk Now Front and Centre

Trump's renewed focus on BRICS countries comes amid a broader geopolitical decoupling trend. The Brazil-hosted BRICS summit criticised Washington’s trade policies and condemned US actions against Iran, further widening the divide between the West and emerging market powers.

Final Outlook

Trump’s latest tariff threat adds uncertainty to an already fragile global trade environment. For investors, this signals:

• Potential disruption to global growth
• A shift in trade flows away from the US
• Increased importance of geopolitical risk management

While short-term gains may be found in safe-haven investments, longer-term strategies may require reevaluating emerging market exposure and watching for currency shifts, particularly in the Chinese yuan and Indian rupee.

Sources: (Investing.com, BBC.co.uk)