In a sharp rebuke during a Cabinet meeting, US President Donald Trump accused BRICS nations of trying to “degenerate” the US dollar and reaffirmed his August 1, 2025 tariff deadline—threatening a 10% levy on all BRICS members, including key partner India.
US President Donald Trump on Monday (local time) issued a fresh and direct warning to BRICS nations, declaring that all members of the bloc will face a 10% tariff on goods exported to the United States starting August 1, 2025. The move, according to Trump, is aimed at protecting the US dollar from what he calls coordinated efforts by the BRICS alliance to weaken America’s global economic dominance.
“They will certainly have to pay 10% if they are in BRICS because BRICS was set up to hurt us, to degenerate our dollar,” Trump said during a Cabinet meeting, alleging that the 11-nation bloc, which includes Brazil, Russia, India, China, and South Africa, poses a direct threat to the strength and global standing of the US currency.
The BRICS grouping, representing nearly 40% of global GDP and almost half the world’s population, has increasingly positioned itself as a counterbalance to US-led economic dominance. Its criticism of Trump’s trade and tariff policies has been vocal, often citing World Trade Organization (WTO) violations.
Tariff Deadline Looms Large
The Trump administration has sent letters to 14 countries, including BRICS members, notifying them of the upcoming reciprocal tariff regime, effective from August 1, 2025. On Truth Social, Trump reiterated the deadline:
“There has been no change to this date, and there will be no change… All money will be due and payable starting August 1, 2025 — no extensions will be granted,” he posted.
No Exceptions—Not Even for India
When questioned specifically about India, a critical US trade partner and fellow BRICS member, Trump was unequivocal:
“They are members of BRICS, they can pay 10% tariff,” he said.
Despite the tariffs, he hinted at progress on a US-India trade deal, expected to be finalized during a high-level bilateral meeting later this month or possibly during Trump’s visit to India in the fall.
India, which seeks preferential access for exports like textiles and garments, is negotiating a trade pact aimed at boosting bilateral trade to $500 billion by 2030, encompassing technology, defense, and energy cooperation.
“Dollar Is King”
Trump doubled down on his currency stance:
“The dollar is king. We’re going to keep it that way… If people want to challenge it, they’ll have to pay a big price,” he said.
He warned that losing the US dollar’s status as the global standard would be akin to “losing a world war.”
Justifying the Tariffs
Labeling past leadership as “stupid,” Trump claimed that previous administrations failed to protect American interests:
“We had no other president that was willing to do this—but I did it,” he said.
He also suggested that tariffs have historically delivered economic success:
“Even in my first term, we took in hundreds of billions in tariffs with no inflation… This time will be even better,” Trump added, predicting record-breaking revenues under his second term.
Open to Fair Negotiations
While presenting the new tariffs as firm, Trump left the door slightly ajar for negotiations:
“I would say firm, but not 100 per cent firm. If they call up and say they would like to do something in a different way, we will be open to that,” he said, suggesting flexibility for countries that propose “fair alternatives.”