Trump delays tariffs, warns BRICS of extra hit

India Today

6 hours ago

US President Donald Trump threatened key trading partners with high tariffs but delayed the increase until August 1, leaving room for negotiations. Japan, South Korea, and 12 other nations face 25 per cent tariffs starting August 1 unless they cut new trade deals with the US soon.Trump announced new tariff rates, sending letters to national leaders and posting on social media. He's also threatening to target other countries this week. These rates replace the high duties he announced in April, which were previously paused for 90 days to allow for the negotiation of trade agreements.advertisement
The US President also threatened to impose a 10 per cent tariff on countries that align with BRICS, accusing the bloc of anti-American policies on Monday.What's new: Trump told 14 nations, including Japan and South Korea, to make new trade deals by August 1 or face tariffs of at least 25 per cent. Trump said he's made deals with the UK and China and is close to making one with India.Why it matters: The moves disrupt global trade, hit prices, and raise uncertainty for top US suppliers. Trump signed an executive order on Monday, extending a pause and notifying countries of new US taxes on their exports.In numbers:Six countries already face 25–40 per cent tariffsJapan and South Korea face 25 per cent tariffsThailand's rate is 36 per cent, Bangladesh 35 per centTariffs take effect: August 1, 2025An extra 10 per cent tariff threatened on 10 BRICS membersWhat's next: Trading partners without letters include the EU, India, Taiwan, Brazil, Turkey, and Australia. A deal might be coming, or one might face escalation. Australia, with a US trade surplus, could negotiate in a positive manner. India had hoped for a deal, while the EU, the most contentious, believes it can avoid a letter.In-depth: Countries without deals are getting letters. The US posted tariff notices online, targeting Japan, South Korea, South Africa, and others. These letters come with a 25 per cent tariff, rising to 40 per cent in some cases. Trump signed an executive order delaying the new tariffs until August 1.At the same time, he warned that BRICS countries — and those supporting them — may face an extra 10 per cent tariff. This comes as BRICS leaders meet in Rio de Janeiro. Trump accused the group of pushing "anti-American" policies.BRICS countries issued a statement criticising tariffs and foreign policies, without directly naming the US or Trump. The statement said unilateral tariffs harm global trade, disrupt supply chains, and cause uncertainty. It also condemned last month's military strikes on Iran, calling them a violation of international law.BRICS was formed in 2006 by Brazil, Russia, India, and China. South Africa joined in 2010. Iran, Egypt, Ethiopia, and the UAE became members in 2024. Indonesia joined this year. Over 30 nations have applied.advertisementPrime Minister Narendra Modi said India will redefine BRICS next year and focus on key issues facing the Global South.What they said: "Any country aligning with anti-American BRICS policies will be charged an additional 10% tariff. No exceptions," said Donald Trump on Truth Social."The world does not want an emperor who lashes out over the internet," President Lula da Silva of Brazil said."Under India's BRICS presidency, we will work to define BRICS in a new form," PM Modi said.- EndsTune InMust Watch