According to Deutsche Welle, The imposition of higher tariffs on these emerging economies has prompted a response that sees these countries aligning more closely in an effort to counterbalance US economic strategies.
China, facing the possibility of a 145% tariff if it fails to reach an agreement with Trump, finds itself alongside Brazil and India, both subject to a 50% tariff rate. Half of India's penalty is attributed to its purchase of discounted Russian oil. South Africa has been hit with a 30% levy, and even newer BRICS members like Egypt might experience increased tariffs due to their association with the group.
Throughout the first seven months of his second term, Trump has warned of further punitive measures against nations he views as aligning with "anti-American policies." This stance appears to target the growing influence and unity of the BRICS coalition, which Trump has controversially declared "dead." Critics, however, argue that such measures constitute "strategic malpractice," inadvertently transforming a coalition with diverse objectives into a more cohesive bloc.
Max Boot, a foreign policy analyst at the Council on Foreign Relations, highlighted in a Washington Post op-ed that Trump's actions are diminishing US power by uniting allies and adversaries alike. The recent Shanghai Cooperation Organization summit in Tianjin saw a diplomatic breakthrough as Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and Russian President Vladimir Putin held trilateral talks for the first time in six years, signaling a thaw in relations among BRICS heavyweights.
The summit laid the foundation for enhanced cooperation in trade, energy, and regional security, paving the way for the upcoming BRICS virtual summit. Brazilian President Luiz Inacio Lula da Silva will host discussions with Global South leaders on retaliatory measures against US tariffs and promoting trade in local currencies.
India, reacting to Trump's tariffs, is recalibrating its approach to China. The two nations have resumed direct flights, eased visa restrictions, and engaged in trade talks. Chinese Foreign Minister Wang Yi's recent visit to India resulted in an agreement to boost rare earth mineral supplies, vital for India's clean energy and defense sectors.
Despite ongoing suspicions over China's regional ambitions, India continues to balance its longstanding ties with Washington with its interactions within BRICS. Similarly, Brazil and South Africa are strengthening their economic ties with China, emphasizing the importance of BRICS commitments.
While BRICS has grown from four to ten members, internal divergences pose challenges to its ambitions. However, the bloc is focusing on pragmatic cooperation in trade and finance. Intra-BRICS trade is set to grow, with political support for initiatives like the BRICS grain exchange and local currency settlements.
Mihaela Papa of the Center for International Studies anticipates increased political backing for new trade initiatives within BRICS. Despite the dominance of the dollar, alternative settlement systems in yuan, rupee, and ruble are expected to grow, gradually challenging the dollar's monopoly.