US President donald trump announced on tuesday that a 10% additional tax will soon be imposed on all countries in the BRICS (BRICS) alliance. It is noteworthy that india is also in the BRICS alliance. While there is already a fear of reciprocal taxes, Trump's new tax imposition has given an additional shock to the BRICS countries. Speaking at a US cabinet meeting on tuesday, trump accused the BRICS alliance of being formed to devalue the US dollar. He criticized this move by the BRICS countries as being against the US economy. This announcement has created new tensions in global trade, and it is expected that it will have a major impact on india in particular. Speaking at a cabinet meeting, trump said, "The BRICS group was created to weaken the US dollar. All countries in the group, including india, will have to pay a 10% tax without exception." The announcement follows Trump's warning on Monday. According to a Reuters report, the tax will not take effect immediately, but only if the BRICS countries adopt "anti-American" policies.
 Trump made the announcement within weeks of taking office, and the amount of the tax was not disclosed. It is also noteworthy that india has categorically stated that the BRICS group has not taken any steps to reduce the dominance of the US dollar. The BRICS group includes Brazil, Russia, india, China, and South Africa. This grouping was formed to reduce the dominance of Western countries and improve trade among the BRICS countries. Although india is a major trading partner of the united states, Trump's announcement targets india without exception. This tax could affect goods imported from india to the united states, such as pharmaceuticals, technology equipment, automobile parts, and textiles. While trump has already imposed a 26 percent tax on india in the reciprocal tax, now the 10 percent tax on BRICS countries can be imposed on a total of 36 percent tax on indian goods and services.0

The exemption from this tax is that india and the united states must sign a trade agreement by July 9. Otherwise, according to the latest extension given by trump, an agreement must be signed by august 1. Otherwise, the 26 percent tax will come into effect. The 10 percent tariff announcement comes 24 hours after the BRICS leaders issued a scathing statement criticizing Donald Trump's trade actions as a threat to global economic growth and stability at a summit in Rio de Janeiro, Brazil.
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Sowmiya Sriram

09/07/2025 09:05 AM