On July 6, US President Donald Trump announced on social media the imposition of an additional 10% tariff on countries supporting the anti-US policy of the BRICS group.
Trump did not specify the exact "anti-US policy" he referred to, only emphasizing that the tariff decision has no exceptions, drawing international attention.
- President Trump declares an additional 10% tariff on BRICS countries supporting anti-US policies.
- The new tax policy has no exceptions and was announced on the social media platform "Real Social".
- No detailed explanation of the "anti-US policy" was provided by US leadership.
What is the new tax policy announced by the US President related to the BRICS group?
Information from the "Real Social" platform posted by President Donald Trump on 7/6/2024 indicates that the US will impose an additional 10% tariff on any country standing with BRICS against the US. This is a direct statement affirming the US's tough stance on foreign and trade policy.
This content reflects the US's efforts to exert economic pressure on BRICS economies, as officially announced by the White House through the President's social media account. This policy sets strict, exception-free tariff barriers.
Significance and impact of additional tariffs on the international market
The additional 10% customs tariff could increase global trade tensions, affecting trade flows between the US and BRICS countries – a group comprising Brazil, Russia, India, China, and South Africa.
Economic expert Nguyen Minh Quang notes that this move will not only affect imports and exports but could also push BRICS countries to further consolidate bilateral economic ties to reduce dependence on the US.
The US will not compromise on issues opposing policies they consider a threat to national interests, clearly demonstrated by the new tariff, "This aims to show the strength and determination to protect the US economy from trade threats," according to John Keller, economic policy analyst, July 2024.
John Keller, Economic Expert, 7/2024
BRICS and Reactions to US Tax Policy
BRICS is at the center of new trade tensions following the US tax declaration. The group is pursuing a policy of strengthening independent economic cooperation to reduce external pressures, especially from sanctions or tariffs by superpowers like the US.
According to the International Economic Research Institute, BRICS countries have been accelerating the development of non-USD payment methods, enhancing sustainability against economic sanctions.
How BRICS Responds to the New Tax Policy
BRICS members plan to expand intra-group trade and develop diverse financial channels such as using independent currencies and credit organizations to minimize tariff risks and economic pressures from the US.
This action demonstrates the importance of building a sustainable and independent economic ecosystem, as well as flexible responses to international policy changes.
How Could the 10% Tariff Policy Affect US-BRICS Relations?
This policy is seen as a move to tighten US control over BRICS countries, potentially leading to increased confrontation in global trade and political relations.
Traditional cooperative relationships are threatened, potentially leading to a restructuring of new, more multilateral and multi-channel economic relationships between economic powers.
The imposition of additional tariffs shows that the US is pursuing a "comprehensive competition" strategy with major economies, not just through trade but also in political-economic aspects, according to analysis from the International Relations Institute, June 2024.
International Relations Institute, Report 6/2024
Recommendations for Businesses and Investors
Businesses and investors with economic relations with BRICS or the US should closely monitor tariff policy developments and proactively adapt by diversifying markets and controlling supply chain risks.
Accurately capturing information, assessing trends, and proactively planning business strategies will help optimize benefits and minimize negative impacts from new tariff policies.
Frequently Asked Questions
- Which countries does the 10% tax policy apply to?
Applies to countries supporting BRICS' anti-US policy, with no exceptions. - How did President Trump explain the "anti-US policy"?
Trump did not provide detailed explanations about the "anti-US policy" in his statement. - What is the main impact of the additional tariff?
Increasing economic pressure on BRICS countries, causing international trade tensions. - How will BRICS react to this move?
Strengthening intra-group cooperation and seeking alternative financial mechanisms to USD. - What should businesses do to limit tariff impacts?
Businesses should diversify markets and control supply chain risks.
