US President Donald Trump threatens countries who align with BRICS with 10% additional tariff for ‘anti-American’ policies
The coalition of developing countries, otherwise known as BRICS group, currently meeting in Brazil’s Rio de Janeiro, has voiced the need for more multilateralism in an increasingly fractured world which is seeing multiple conflicts. The declaration also called for “reforms of the principal organs of the United Nations”, including the UN Security Council, the General Assembly and the Economic and Social Council.
The emergence of a new world order may be on the cards considering that the 11-member strong BRICS group currently hosts 56% of the world population, and accounts for 44% of global GDP. The BRICS group, originally consisting of Brazil, Russia, India, China and South Africa, recently included Indonesia as a full time member.
Brazilian President Luiz Inácio Lula da Silva criticized the International Monetary Fund (IMF) and the World Bank for their role in ensuring that “emerging and developing economies finance the more developed world” during the second plenary session of the summit being held from July 6-7, 2025. He also voiced that the voting power of BRICS members in the IMF should be at least 25%, and not the current 18%.
The BRICS group discussed the challenges of the climate crisis faced by developing countries, and demanded that developed Western countries should pay for global mitigation efforts to downplay the ill effects of harmful emissions.
Both Russian and Chinese presidents, Vladimir Putin and Xi Jinping respectively, however, were absent from the meet.
The joint statement released by the BRICS bloc also pushed for greater participation of less underdeveloped and developing countries on the global stage. It read: “We also reiterate our commitment to ensuring greater and more meaningful participation and representation of Emerging Markets and Developing Countries (EMDCs), as well as Least Developed Countries (LDCs), especially from Africa and Latin America and the Caribbean, in global decision-making processes”.
For India, which is going to be the group chair next year, this presents an opportunity to prioritise issues faced by Global South countries. In fact, India’s finance minister Nirmala Sitharaman said that the subcontinent will utilise the BRICS platform to solidify cooperation between developing countries, especially in matters like bilateral cooperation, economic growth and leveraging the New Development Bank to finance development and sustainable projects. The BRICS bloc also supported India’s candidacy to host COP33 in 2028.
US’ retaliation
Without naming US President Donald Trump, the BRICS group also pointed out the possible economic difficulties that increased tariffs can cause, and also condemned the wars happening in the Middle-East.
The group said that the rise of tariffs were inconsistent with WTO (World Trade Organization) rules, and that it threatened to “reduce global trade, disrupt global supply chains, and introduce uncertainty.”
Trump, however, reacted in a more direct manner. On the social media platform Truth Social, he declared, “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!”
The US stance when it comes to renewable energy and transitioning to a greener world is also divergent from BRICS joint viewpoint. The bloc wants to build a sustainable future where green energy plays a big role, even though fossil fuel states like Saudi Arabia and Russia are core members.
BRICS leading in renewable energy
According to a report by Net Zero Industrial Policy Lab, green energy and climate technology scaling up and green manufacturing has grown beyond just protecting the environment to actual economic growth and security strategies of a country.
The report also points out that, globally, annual investment in clean energy is now double that of fossil fuels, reaching $2 trillion in 2024. In BRICS countries, there are double the number of new wind and utility-scale solar power projects underway than new fossil fuel projects.
The BRICS bloc reaffirmed its commitment to ensure just and inclusive energy transition in line with Sustainable Development Goal 7 (SDG7).
A report by the London-based think tank Ember revealed that in 2024, the BRICS bloc was responsible for generating 51% of the world’s electricity from solar. A decade back, it was a mere 15%.
Of this 51% solar generation, China leads the pack by generating 39% of it, with India and Brazil contributing 6.3% and 3.5% generation respectively. In fact, these three countries are among the top five solar producers in the world, with the US and Japan holding the two other spots.
“BRICS countries are no longer on the sidelines of the clean energy transition – they are driving it,” said Muyi Yang, Senior Electricity Analyst at Ember. “They now account for more than half of global solar power generation. As economies like China, India, and Brazil scale up solar at record pace, BRICS is proving that clean electricity can power both economic growth and resilience.”
With the developing world coming together under the BRICS umbrella, its position and strength are both increasing. With the developed world shirking its responsibility of paying adequate climate finance to other developing and underdeveloped countries, the BRICS bloc can be the voice of reason and reform in the geopolitical space.
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