Trump threatens to slap 10 pec additional tariffs on BRICS countries for ‘Anti American' policies
"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," Trump said on Truth Social.
The international multilateral bloc which was founded by Brazil, Russia, India, China, and South Africa as an alternative platform to challenge Western hegemony and promote the voices of developing countries, has long been criticised by the US President.
BRICS has been viewed as a favourable bloc by many countries who have expressed their wish to join, and last year expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates, with Vietnam becoming a partner nation this year.
Trump's comments came the bloc's members criticised the US tariff policies as well as proposing reforms to the International Monetary Fund (IMF) and how major currencies are valued, reports BBC.
BRICS countries, who started a meeting in Rio de Janeiro this weekend, have called for reforms to global institutions and positioned the alliance as a platform for diplomacy amid escalating trade conflicts and geopolitical tensions.
A joint statement by the bloc's Finance Ministers slammed the tariffs, labelling them as a threat to the global economy, and accused it of bringing "uncertainty into international economic and trade activities".
The leaders also condemned the military strikes on Iran in June, criticising the attacks as a violation of international law.
The summit was attended in person by world leaders, including Prime Minister Narendra Modi and South African President Cyril Ramaphosa. Russian President Vladmir Putin attended it online, while China was represented by Premier Li Qiang who stood in President Xi Jinping.
UNI ANV GNK 1240
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
19 minutes ago
- Mint
90-day pause on Trump tariffs set to expire soon. Can renewed trade barriers complicate US Fed's rate cut path?
US Fed Rate Cut: US President Donald Trump's tariff policies have added a layer of complexity to the Federal Reserve's rate-cut deliberations, as the US central bank remains concerned about potential inflationary fallout from higher tariffs. Now, ahead of the expiry of the 90-day pause on tariffs this week on July 9, Trump said on Sunday that the US is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9. Trump in April announced a 10% base tariff on most countries and higher "reciprocal" rates of up to 50%. Trump also threatened an extra 10% tariff on countries aligning themselves with what he called the anti-American policies of the BRICS group of developing nations. While no substantial trade deals are in place yet, the concerns for the economy continue to linger, further impacting the US Fed's rate cut decision. The US Fed Chief Jerome Powell has already communicated that the central bank will 'wait and learn more' about how these tariffs are filtering into higher inflation before they start to focus on interest rates. Other Fed officials also say that the unclear trade policy and the chance that adding or bringing back higher fees could push prices up again means they will be careful and rely on data before cutting rates. Pranay Aggarwal, Director and CEO of Stoxkart said the approaching expiry of the 90-day pause on Trump-era tariffs could reignite trade tensions, especially between major economies like the US and China. "If renewed trade barriers are introduced, we may see a ripple effect on global inflation, supply chains, and investor sentiment. For the US Federal Reserve, this adds another layer of complexity; rising trade-related inflationary pressures could delay or limit the scope of planned rate cuts, as the Fed continues to balance between cooling inflation and supporting growth," Aggarwal added. Palka Arora Chopra, Director, Master Capital Services believes the reimposition of trade barriers by the US, and may further postpone any rate cuts. Delayed rate cuts also don't bode well for emerging markets (EMs) like India, as higher US interest rates curb FII inflows into EMs. In the last policy meeting, the US Fed along expected lines kept the rates unchanged at 4.25-4.5%, while the Fed's dot plot continued to signal two rate cuts for 2025. The dot plot is a chart published by the US Fed that shows the FOMC's future path on interest rates. Last week, data showed US job growth was unexpectedly solid in June, further easing pressure for the Fed to cut rates. Minutes from the US Fed's last meeting due later this week could shed more light on the US central bank's rate cut path. Indian stock market has traded on a backfoot ahead of the tariff pause deadline. On Monday, July 4, both BSE Sensex and NSE Nifty ended with small cuts as investors continued to stay on the sidelines. Analysts believe From an Indian market perspective, such developments often translate into increased volatility. "Additionally, any global uncertainty tends to impact foreign institutional investor (FII) flows, which are a key driver of Indian equity markets. While India remains structurally strong, short-term knee-jerk reactions cannot be ruled out if global trade disruptions escalate," Aggarwal said. Meanwhile, commenting on the impact of a possible US-India trade deal, Chopra said that the larger impact on Indian stock markets hinges upon the outcome of the trade negotiations: a deal would sell well, while failure would certainly have a spillover effect on exporters and general market sentiment. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
20 minutes ago
- Economic Times
Trump is already making the next Fed chair's job harder
Reuters U.S. Federal Reserve Chair Jerome Powell testifies before a House Financial Services Committee hearing on "The Semiannual Monetary Policy Report to the Congress," on Capitol Hill in Washington, D.C. President Donald Trump has acknowledged the intense pressure he's laying on the Federal Reserve to lower interest rates is, in fact, making it harder for the central bank to do just he may also be sabotaging the person he picks to succeed Jerome Powell, whose term as chair expires next pledging to pick 'somebody that wants to cut rates,' Trump has potentially undermined the next chair's standing even before they're selected. The public and investors will likely question whether the nominee will safeguard the central bank's independence or bow to Trump's demands. 'People will wonder what sort of promises or implicit promises or winks or nods may have gone on in order to get the nomination,' said Jon Faust, a fellow at the Center for Financial Economics at Johns Hopkins University and a former special adviser to Powell. 'I think that's very bad for the next Fed chair. I think that's very bad for the credibility of the Fed.' Trump has pointed to recent tame inflation readings and lower policy rates in other countries in his calls for the Fed to reduce borrowing costs, while maintaining the central bank can raise interest rates should inflation re-accelerate. He's also argued the Fed — which was late to hike interest rates to counter the inflation surge that followed the Covid-19 pandemic — has often waited too long to adjust its policy. In an emailed statement, White House spokesman Kush Desai said it was Trump's First Amendment right 'to voice his concern about flawed policymaking, and that includes monetary policy that's holding our country's economic resurgence back.'Powell hasn't responded directly to Trump's badgering. Instead, he has emphasized that policymakers are squarely focused on doing what they judge to be in the best interest of the economy and within their legal mandate.'I have a little more than 10 months left on my term as chair and all I want, and all anybody at the Fed wants, is to deliver an economy that has price stability, maximum employment, financial stability,' Powell said on July 1. Right now, Powell and his colleagues have decided that means holding off on rate cuts. They want more clarity on how Trump's tariffs and other policies will affect inflation and employment. That's stoked Trump's ire, and others in his administration have ramped up the attacks in recent days.'I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates,' Trump said of Powell on social media last LessonsIn recent decades, elected officials and Fed policymakers alike have aimed to insulate monetary policy from political interference. That's a result of painful lessons learned when central bankers yielded to outside Volcker, who became Fed chair in 1979, is remembered for waging a dogged fight to quell an inflation problem that many believe went unchecked because the Fed gave in to pressure from President Richard Nixon. Economic historians credit Volcker with reestablishing the Fed's credibility on price stability and setting the stage for a long period of low lesson, and similar examples from around the globe, have led researchers to broadly agree that economies perform better when central banks set rates independently. 'If you believe that the central bank is going to make decisions that even marginally tilt more toward political pressures, you're going to expect higher inflation, more volatility in the macroeconomy,' said Julia Coronado, founder of research firm MacroPolicy Perspectives. 'All of that has a price in the bond market and in financial markets generally.'Coronado said she expects the next Fed leader to be less invested in the central bank's independence than the last few chairs.'It's not going to be some arsonist that comes in and lights the institution on fire. I think it'll be more incremental, but still meaningful,' she said. 'At the margin, they're going to try to guide that committee to easier policy because that will be the political pressure and it will have some impact.'The CandidatesTrump has said he has three or four people in mind to succeed Powell and his pick will come 'very soon.''If I think somebody's going to keep the rates where they are or whatever, I'm not going to put them in. I'm going to put somebody that wants to cut rates,' he said last the White House spokesman, said the president 'will continue to nominate the most qualified individuals who can best serve the American people.' Treasury Secretary Scott Bessent – who is reportedly among those under consideration – said on June 30 the administration will work on naming a successor over the coming weeks and months. Other candidates said to be in contention include Kevin Warsh, a former Fed governor, and a current governor, Christopher Waller. Kevin Hassett, the White House's National Economic Council director, and former World Bank President David Malpass are also said to be in the mix. Bessent, Hassett and Malpass have echoed Trump's view that the Fed should already be cutting rates. Waller, citing recent economic data, has said a rate cut could be appropriate as soon as this month. He has also touted the importance of central bank independence. While in wait-and-see mode for now, most Fed officials still expect the central bank will cut rates at least once this year. And some analysts have noted economic conditions could evolve in a way that makes the rate cuts Trump seeks a less contentious policy choice even before a new chair takes addition, checks on the Fed chief will remain regardless of whom Trump picks. The chair is just one of 19 policymakers on the Federal Open Market Committee, and one of 12 who vote on interest-rate next chair could still be viewed as having credibility if they offer a reasonable intellectual framework for lowering rates, said Derek Tang, an economist at LHMeyer/Monetary Policy Analytics in Washington. He said he'll be watching how investors' expectations for future inflation react once Trump names a pick as an indication of whether markets view the choice as credible.'The candidate has to thread a needle to be pleasing enough to Trump,' Tang said. 'But then at the same time be able to convince the market they're going to stand up for Fed independence and defend the inflation mandate. They have to do both things at once, which is hard.'
Hindustan Times
22 minutes ago
- Hindustan Times
Inside the secret military dialogue between Britain and Argentina
America's top brass worries about the South Atlantic. It is a jumping-off point for Antarctica , where Russia and China boast 15 bases between them, scrambling to lock down resources . It is linked to the Pacific by the Strait of Magellan, the only safe maritime route between the two oceans other than the drought-hit Panama Canal . Traffic through the Strait is surging, as is illegal Chinese fishing on either side. China is pushing infrastructure projects across the region. America's top generals have visited Argentina's deep south three times in the last two years. At first glance the United States is well positioned to manage any threat. President Javier Milei of Argentina is a hyper-willing ally. Britain has Typhoon fighter jets and the HMS Forth patrol vessel stationed in the Falkland Islands. But Argentina's armed forces are in bad shape. Britain's are focused on defending the Falklands (sovereignty over which Britain has and Argentina claims) from Argentina. As a legacy of the Falklands war, Britain has tight restrictions on weapons sales to Argentina. These have hamstrung the latter's efforts to improve its armed forces and pushed it towards buying Chinese planes and weaponry, alarming the United States. Now a mix of factors, including Mr Milei's unusual perspective on the islands and American enthusiasm for Argentina's military modernisation, have created an openin At first glance the United States is well positioned to manage any threat. President Javier Milei of Argentina is a hyper-willing ally. g for a new strategic arrangement in the South Atlantic. Quietly, after a long hiatus, dialogue between the Argentine and British defence ministries has restarted. Argentina wants Britain to loosen its restrictions on arms purchases. Britain wants discreet acceptance of its role in the rest of the South Atlantic even while Argentina maintains its constitutional claim over the Falklands. Britain also wants Argentina to work with it on practical matters to improve life on the Falklands. The warming began in February 2024, a few months after Mr Milei took office. British defence attachés visited the ministry of defence in Argentina for first time in three years. In September that year the British and Argentine foreign ministers met and arranged a visit by Argentines to the graves of family members on the Falklands. They also agreed to share fisheries data and to restart monthly direct flights to the Falklands from Argentina. Defence dialogue then ramped up. An Argentine delegation visited London in January. Next, a British one is expected to visit Buenos Aires. Mr Milei wants to modernise his country's armed forces with the best NATO-compatible equipment. He is cutting government spending savagely, but raising the defence budget from 0.5% of GDP to 2% over the next seven years. Last year Argentina applied for NATO-partner status. Britain is interested in a deal, too, but cautious. It shares the American concerns about the South Atlantic. Argentina's de facto acceptance of Britain's relevance in the region would facilitate closer co-operation on everything from science to security, not just with Argentina but also with its neighbours, Chile and Uruguay. But while the Argentine families visited in December, Argentina has not yet shared fishing data or restarted flights, stepping stones to progress on arms policy. The islanders are wary. 'We feel very secure,' says Leona Roberts of the Falklands' Executive Council, 'but we would probably not be wildly comfortable with the UK supplying military equipment to Argentina.' Britain has long blocked sales of military equipment with British components to Argentina, even by third countries. Given the strength of Britain's arms industry this has been a serious constraint. In 2020 it blocked the sale of Korean fighter jets with some British parts. The stated policy is to block sales that could 'enhance Argentine military capability'. Yet there is wriggle room. Britain may allow sales that 'are not detrimental to the UK's defence and security interests'. A first step could be to interpret that clause more flexibly. The shape of things to come There are several reasons to believe a new arrangement is possible. Few consider Argentina a real threat to the Falklands. 'It's militarily unthinkable…[Britain] would wipe us off the planet,' says Alejandro Corbacho, a military historian at the University of CEMA in Buenos Aires. Britain seems more willing to reconsider its restrictions if Argentina planned to make large purchases, as that would boost Britain's defence industry. If so, that would suggest the embargo is more about politics than protecting the Falklands. Britain knows its restrictions are anyway losing bite as more countries make military kit. That the United States wants a new arrangement matters too. In public statements it has offered 'steadfast' support for the modernisation of Argentina's armed forces. In private, one American with knowledge of the matter calls Argentina 'a huge partner' but says its military is 'in very sore need of equipment and training'. But that equipment must be Western, not Chinese. Britain's embargo makes that harder. Continued intransigence could end up bolstering those in a post-Milei government that believes Argentina's future, in weaponry and politics, runs through China rather than the West. Argentina's dalliance with American adversaries is real. Mr Milei likes trading with the Asian giant. In 2023, before he took office, a Chinese firm looked set to build a large port near the Argentine entrance to the Strait. That project collapsed amid intense objections both foreign and domestic, but China, which operates a space station in Patagonia, remains keenly interested in the region. Under the last administration Argentina was 'gnat's-ass close to buying Chinese fighter aircraft', warns the American. In 2021, weeks before the invasion of Ukraine, the previous government signed a deal with the Russian ministry of defence allowing Argentine officers to travel to Russia for training. During Joe Biden's presidency the United States pushed Britain to let Argentina buy modern F-16 fighter jets with a British-made ejector seat. Britain was reluctant and an alternative was found. Argentina bought older F-16s from Denmark with $40m of American money. These did not have British parts, so its approval was not required. However, the United States still sought to explain and justify it to Britain, which accepted it. That was progress. 'The US government was also interested in whether the broader export controls could be ended,' says a former American official. A spokesperson for the British government says it has 'no current plans to review the UK's export-control policy for Argentina'. But it is easy to imagine Britain's position shifting. The Trump administration is pushy, ignores orthodoxy and is close to Mr Milei, whose pro-Western stance probably helps Britain to be flexible. His conciliatory tone and taboo-breaking on the Falklands is crucial. He openly admires Margaret Thatcher, who led Britain during the Falklands war. He admits that the islands 'are in the hands of the UK' and assures that Argentina will not try to retake them by force. Recently, he even seemed to imply that the islanders have a right to self-determination, Britain's position. Domestic politics remain a formidable barrier in both countries. Argentina appointed a new foreign minister in October. Despite enthusiasm in other parts of government, better ties with Britain seem less of a priority for the new man. For its part, Britain worries about who comes after Mr Milei. Selling arms to a Milei-led Argentina may be okay, but he will leave office in 2027 or 2031. An attempt in 2016 to reset relations was torn up after the left-wing Peronists returned to power. It would be embarrassing to help Argentina modernise its armed forces only for that to happen again. In both countries the flag-waving opposition could paint an agreement as a concession and use it to whip up anger. In Britain, Nigel Farage's Reform UK party is surging in the polls and could easily pressure the government over any new arrangement, framing it as a betrayal of the war dead, perhaps. In Argentina the Peronists have already attacked Mr Milei for his stance on the Falklands. With mid-term elections in October he and his team may prefer to steer clear of the issue for now. Yet the overriding logic of Mr Milei's foreign policy is airtight alignment with the United States (notwithstanding trade with China). Britain has a similar, if less absolutist, tradition. The Trump administration is so exercised about Chinese influence in Latin America that it threatens to seize the Panama Canal. It is also clear about the threat in the South Atlantic. If it pushes harder its two allies may draw a similar conclusion—and act accordingly.
