logo
Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

RIO DE JANEIRO: President Donald Trump said the U.S. will impose an additional 10% tariff on any countries aligning themselves with the 'Anti-American policies' of the BRICS group of developing nations, whose leaders kicked off a summit in Brazil on Sunday.
With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive 'America First' approach of the U.S. president, the BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars.
In a joint statement from the opening of the BRICS summit in Rio de Janeiro released on Sunday afternoon, the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump's tariff policies.
Hours later, Trump warned he would punish countries seeking to join with the grouping.
'Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!' Trump said in a post on Truth Social.
Trump did not clarify or expand on the 'Anti-American policies' reference in his post.
Trump's administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant 'retaliatory tariffs'.
The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates as members.
Saudi Arabia has held off formally joining, according to sources, while another 30 nations have expressed interest in participating in the BRICS, either as full members or partners.
Indonesia's senior economic minister, Airlangga Hartarto, is in Brazil for the BRICS summit and is scheduled to go to the U.S. on Monday to oversee tariff talks, an official told Reuters. India's foreign ministry did not immediately respond to a request for comment.
In opening remarks to the summit earlier, Brazil's President Luiz Inacio Lula da Silva drew a parallel with the Cold War's Non-Aligned Movement, a group of developing nations that resisted joining either side of a polarized global order.
'BRICS is the heir to the Non-Aligned Movement,' Lula told leaders. 'With multilateralism under attack, our autonomy is in check once again.'
BRICS nations now represent more than half the world's population and 40% of its economic output, Lula noted in remarks on Saturday to business leaders, warning of rising protectionism.
Growing clout, complexity
Expansion of the bloc has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the United Nations Security Council and the International Monetary Fund.
'If international governance does not reflect the new multipolar reality of the 21st century, it is up to BRICS to help bring it up to date,' Lula said in his remarks, which highlighted the failure of U.S.-led wars in the Middle East.
Stealing some thunder from this year's summit, Chinese President Xi Jinping chose to send his premier in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court related to his war in Ukraine.
Still, several heads of state were gathered for discussions at Rio's Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.
However, there are questions about the shared goals of an increasingly heterogeneous BRICS group, which has grown to include regional rivals along with major emerging economies.
In the joint statement, the leaders called attacks against Iran's 'civilian infrastructure and peaceful nuclear facilities' a 'violation of international law.'
BRICS finance ministers make unified proposal for IMF reforms
The group expressed 'grave concern' for the Palestinian people over Israeli attacks on Gaza, and condemned what the joint statement called a 'terrorist attack' in India-administered Kashmir.
The group voiced its support for Ethiopia and Iran to join the World Trade Organization, while calling to urgently restore its ability to resolve trade disputes.
The leaders' joint statement backed plans to pilot a BRICS Multilateral Guarantees initiative within the group's New Development Bank to lower financing costs and boost investment in member states, as first reported by Reuters last week.
In a separate statement following a discussion of artificial intelligence, the leaders called for protections against unauthorized use of AI to avoid excessive data collection and allow mechanisms for fair payment.
Brazil, which also hosts the United Nations climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on U.S. climate initiatives.
China and the UAE signaled in meetings with Brazilian Finance Minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility, according to two sources with knowledge of the discussions about funding conservation of endangered forests around the world.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ringgit, rupiah weaken
Ringgit, rupiah weaken

Business Recorder

time38 minutes ago

  • Business Recorder

Ringgit, rupiah weaken

BENGALURU: Currencies in emerging Asia dipped against the US dollar on Monday, while most regional stock indexes drifted further from their recent highs, as sparse details and confusion on US tariff deadlines and negotiations with major trading partners kept investors on edge. US President Donald Trump's threat of an extra 10% tariff on countries aligning with the 'anti-American policies' of the BRICS group, as well as sending letters to partners threatening about restoring April 2 tariffs exacerbated the risk-averse sentiment. BRICS is a group of emerging economies comprising Brazil, Russia, India and China, with Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates included as members last year. The Indian rupee hit a seven-session low on the day, while its Nifty 50 drifted lower. Thailand's baht slipped 0.7% to its weakest in four sessions, while South Korea's won, the Philippine peso, and the Malaysian ringgit hovered near multi-session lows. An MSCI index tracking emerging market currencies fell 0.3%. The US dollar index nudged higher to 97.219 in Asia afternoon trade, though it remained pinned around multi-year lows against the euro and the Swiss franc. Asian countries, heavily dependent on imports from China and US investments and businesses, are caught in an escalating trade war between the world's top two economies. They 'face an increasingly complex balancing act between maintaining US market access and Chinese investment flows, complicated by heavy dependence on Chinese intermediate goods and insufficient local supply chain alternatives,' analysts at Nomura wrote.

Netanyahu meets Trump at White House as Israel, Hamas discuss ceasefire
Netanyahu meets Trump at White House as Israel, Hamas discuss ceasefire

Business Recorder

time2 hours ago

  • Business Recorder

Netanyahu meets Trump at White House as Israel, Hamas discuss ceasefire

WASHINGTON/TEL AVIV: US President Donald Trump, hosting Israeli Prime Minister Benjamin Netanyahu at the White House on Monday, said the United States had scheduled talks with Iran and indicated progress on a controversial effort to relocate Palestinians out of Gaza. Speaking to reporters at the beginning of a dinner between U.S. and Israeli officials, Netanyahu said the United States and Israel were working with other countries who would give Palestinians a 'better future,' suggesting that the residents of Gaza could move to neighboring nations. 'If people want to stay, they can stay, but if they want to leave, they should be able to leave,' Netanyahu said. 'We're working with the United States very closely about finding countries that will seek to realize what they always say, that they wanted to give the Palestinians a better future. I think we're getting close to finding several countries.' Trump, who initially demurred to Netanyahu when asked about the relocating of Palestinians, said the countries around Israel were helping out. 'We've had great cooperation from … surrounding countries, great cooperation from every single one of them. So something good will happen,' Trump said. The president earlier this year floated relocating Palestinians and taking over the Gaza Strip to turn it into the 'Riviera of the Middle East.' Gazans criticized the proposal and vowed never to leave their homes in the coastal enclave. Human rights groups condemned the plan as ethnic cleansing. Trump and Netanyahu met for several hours in Washington while Israeli officials continued indirect negotiations with Hamas aimed at securing a U.S.-brokered Gaza ceasefire and hostage-release deal. Netanyahu returned to the Blair House guest house late on Monday, where he is due to meet Vice President JD Vance at 9:30 EDT on Tuesday. Netanyahu's visit follows Trump's prediction, on the eve of their meeting, that such a deal could be reached this week. Before heading to Washington, the right-wing Israeli leader said his discussions with Trump could help advance negotiations under way in Qatar between Israel and the Palestinian group. It was Trump's third face-to-face encounter with Netanyahu since returning to office in January, and came just over two weeks after the president ordered the bombing of Iranian nuclear sites in support of Israeli air strikes. Trump then helped arrange a ceasefire in the 12-day Israel-Iran war. Trump said his administration would be meeting with Iran. 'We have scheduled Iran talks, and they … want to talk. They took a big drubbing,' he said. Trump's Middle East envoy Steve Witkoff said the meeting would take place in the next week or so. Trump said he would like to lift sanctions on Iran at some point. 'I would love to be able to, at the right time, take those sanctions off,' he said. Iranian President Masoud Pezeshkian said in an interview released on Monday that he believed Iran could resolve its differences with the United States through dialogue. Trump and his aides appeared to be trying to seize on any momentum created by the weakening of Iran, which backs Hamas, to push both sides for a breakthrough in the 21-month Gaza war. The two leaders, with their top advisers, held a private dinner in the White House Blue Room, instead of more traditional talks in the Oval Office, where the president usually greets visiting dignitaries. Outside, hundreds of protesters, many wearing Palestinian keffiyeh scarves and waving Palestinian flags, gathered near the White House, waving banners that read 'Stop Arming Israel' and 'Say No to Genocide'. They also called for Netanyahu's arrest, referring to the International Criminal Court's arrest warrant against the Israeli leader over alleged war crimes in Gaza. Netanyahu met earlier on Monday with Witkoff and Secretary of State Marco Rubio. He planned to visit the U.S. Capitol on Tuesday to see congressional leaders. During their meeting, Netanyahu gave Trump a letter that he said he had used to nominate the U.S. president for the Nobel Peace Prize. Trump, appearing pleased by the gesture, thanked him. Ahead of their visit, Netanyahu told reporters Israeli negotiators were driving for a deal on Gaza in Doha, Qatar's capital. Israeli officials also hope the outcome of the conflict with Iran will pave the way for normalization of relations with more of its neighbors such as Lebanon, Syria and Saudi Arabia. Second day of Qatar talks Witkoff, who played a major role in crafting the 60-day ceasefire proposal at the center of the Qatar negotiations, will travel to Doha this week to join discussions there, White House press secretary Karoline Leavitt told reporters earlier on Monday. In a sign of continued gaps between the two sides, Palestinian sources said Israel's refusal to allow the free and safe entry of humanitarian aid into Gaza remains the main obstacle to progress in the indirect talks. Israel insists it is taking steps to get food into Gaza but seeks to prevent militants from diverting supplies. On the second day of negotiations, mediators hosted one round and talks were expected to resume in the evening, the Palestinian sources told Reuters. The U.S.-backed proposal envisages a phased release of hostages, Israeli troop withdrawals from parts of Gaza and discussions on ending the war entirely. Hamas has long demanded a final end to the war before it would free remaining hostages; Israel has insisted it would not agree to halt fighting until all hostages are released and Hamas dismantled. Trump told reporters last week that he would be 'very firm' with Netanyahu on the need for a speedy Gaza deal and that the Israeli leader also wanted to end the war. Some of Netanyahu's hardline coalition partners oppose halting military operations but, with Israelis having become increasingly weary of the Gaza war, his government is expected to back a ceasefire if he can secure acceptable terms. A ceasefire at the start of this year collapsed in March, and talks to revive it have so far been fruitless. Meanwhile, Israel has intensified its military campaign in Gaza and sharply restricted food distribution. Gazans were watching closely for any sign of a breakthrough. 'I ask God almighty that the negotiating delegation or the mediators pressure with all their strength to solve this issue, because it has totally became unbearable,' said Abu Suleiman Qadoum, a displaced resident of Gaza city. The Gaza war erupted when Hamas attacked southern Israel in October 2023, killing around 1,200 people and taking 251 hostages. Some 50 hostages remain in Gaza, with 20 believed to be alive. Israel's retaliatory war in Gaza has killed over 57,000 Palestinians, according to the enclave's health ministry. Most of Gaza's population has been displaced by the war and nearly half a million people are facing famine within months, according to United Nations estimates. Trump has been strongly supportive of Netanyahu, even wading into domestic Israeli politics last month by criticizing prosecutors over a corruption trial against the Israeli leader on bribery, fraud and breach-of-trust charges that Netanyahu denies.

Gold holds ground as investors assess US tariff hike
Gold holds ground as investors assess US tariff hike

Business Recorder

time2 hours ago

  • Business Recorder

Gold holds ground as investors assess US tariff hike

Gold held steady on Tuesday after U.S. President Donald Trump unveiled higher tariffs on imports from Japan, South Korea, and other nations, while a firm dollar and higher Treasury yields limited potential gains. Spot gold was steady at $3,334 per ounce, as of 0220 GMT. U.S. gold futures remain unchanged at $3,344.20. On Monday, Trump began telling trade partners that sharply higher U.S. tariffs would start on August 1, marking a new phase in the trade war he launched earlier this year, with tariffs on goods from Japan and South Korea set at 25%. Trump said the August 1 deadline for implementing the tariffs was firm but that he would consider extensions if countries made proposals. 'Reciprocal tariffs' were capped at 10% until July 9 to allow for negotiations, but only agreements with Britain and Vietnam have been reached so far. 'Trump's latest tariff letters are keeping gold in the frame for investors as an uncertainty hedge, but a resilient U.S. dollar and higher bond yields are constraining the metal's immediate upside potential,' KCM Trade Chief Market Analyst Tim Waterer said. Gold falls as dollar firms after tariff deadline extension The yield on benchmark U.S. 10-year notes hovered near a two-week high, while the U.S. dollar index steadied after reaching a one-week high in the prior session. Higher yields increase the opportunity cost of holding non-yielding bullion, while a stronger dollar raises gold's cost for holders of other currencies. 'Traders seem relatively unfazed by Trump's tariff letters, and with safe-haven demand largely contained at this point, gold is still just biding its time waiting for a topside breakout to potentially occur,' Waterer said. Trump's tariff policies have stoked inflation fears, further complicating the Federal Reserve's path to lower interest rates. Minutes of the Fed's June meeting, expected on Wednesday, should offer more clues into the central bank's policy outlook. Spot silver edged down 0.1% to $36.78 per ounce, platinum rose 0.6% to $1,379.29 and palladium gained 1% to $1,170.46.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store