BRICS 2.0 meets Trump’s tariff warning: what this clash means for global trade

The once‑five‑nation BRICS club has grown to ten—now spanning Brazil, Russia, India, China, South Africa plus Egypt, Ethiopia, Indonesia, Iran and the UAE.

With that scale‑up comes louder talk of trading in local currencies and chipping away at the US‑dollar’s dominance.

Donald Trump has noticed. At a recent campaign stop he floated a 10 % blanket tariff on every BRICS member, framing the group as “anti‑American” and a direct threat to US economic clout. Earlier trial balloons even mentioned triple‑digit duties.

Why the heat?

De‑dollarization worries – Cross‑border deals settled in yuan, rupees or rubles dilute Washington’s financial leverage.

Economic heft – India and China alone account for ~35 % of global growth; add resource‑rich Brazil, Russia and the Middle‑East’s energy corridor and you have a formidable counter‑weight.

Sanctions leakage – A wider BRICS gives sanctioned states (read: Russia & Iran) alternative trading channels.

2024 politics – Tough‑on‑trade rhetoric still plays well on the US campaign trail.

India’s tightrope

New Delhi insists BRICS is “non‑aligned, not anti‑US.” External‑Affairs officials downplay any unified plan to replace the dollar, yet India quietly backs greater use of the rupee in oil, defence and digital‑payments deals—especially with Russia.

What to watch next

Will Washington convert threats into WTO‑tested tariffs?

Can BRICS agree on a formal payment rail or even a shared unit of account?

How will multinationals hedge supply chains if trade lines polarize further?

Boards, policymakers and investors would do well to scenario‑plan now; the rules of engagement for global commerce may be about to shift—again.

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