As US President Donald Trump revved up his tariff threat against Brics, Brazil and India responded with a show of unity as they vowed to triple bilateral trade during Indian Prime Minister Narendra Modi’s state visit to Brasilia on Tuesday.
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Describing the US dollar as the “king”, Trump on Tuesday claimed that Brics was set up to hurt the US and “degenerate” the dollar. He added that Brics nations, including India and Brazil, would “have to pay 10 per cent if they’re in Brics”.
“If they want to play their game, I can play their game too. So anybody that is in Brics is getting a 10 per cent charge,” he said.
While Brics countries have pushed to boost trade among themselves and explore an alternative payment system, only Russia has fully endorsed replacing the US dollar. De-dollarisation was neither mentioned in the bloc’s leaders’ statement released on Sunday in Rio de Janeiro, nor was it a priority for this year’s agenda.
The group was originally known by the acronym Bric, when it comprised Brazil, Russia, India and China. It has since added South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
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Brics leaders condemn strikes on Iran and tariffs but avoid direct mention of US, Israel
Brics leaders condemn strikes on Iran and tariffs but avoid direct mention of US, Israel
Trump has continued to attack the bloc, which seeks to unite emerging market economies from the Global South and reform Western-dominated international institutions, blaming it for “anti-American policies”. Brics, as a group, has not officially responded to Trump’s hardening posture.