Trump Threatens New Tariffs on India Over BRICS Ties Ahead of Key Trade Deal
Just as India and the United States edge closer to finalizing a long-awaited trade deal, U.S. President Donald Trump has issued a fresh warning to India, threatening new tariffs over its continued involvement in the BRICS alliance.
Speaking on Tuesday, Trump said India could face an additional 10% tariff, grouping it with other BRICS nations — Brazil, Russia, China, and South Africa — which he accused of being “anti-American.” The warning comes just a day after Trump suggested that a breakthrough in trade negotiations with India was imminent, potentially shielding New Delhi from a proposed 26% reciprocal tariff.
Trump’s remarks followed a two-day BRICS summit in Brazil, where member nations, including Indian Prime Minister Narendra Modi, signed a joint statement criticizing trade-distorting tariffs. While leaders from Brazil and South Africa responded publicly to Trump’s earlier comments, India has so far refrained from making any direct statements.
### India Responds Cautiously
Despite Trump’s sharp rhetoric, Indian officials have downplayed the threat. Speaking to Bloomberg on condition of anonymity, officials in New Delhi said they do not believe the U.S. President’s criticism is directly aimed at India. They emphasized that India’s participation in BRICS is not about undermining the U.S. dollar, which Trump has repeatedly accused the group of attempting through talk of an alternative reserve currency.
India, the officials noted, is not pushing for a BRICS currency and engages in local currency trade mainly to reduce financial risk, not to challenge the dollar’s dominance.
The Ministry of Commerce and Industry has not commented officially. However, senior Indian diplomat P. Kumaran stated at a press briefing that Prime Minister Modi and Brazilian President Luiz Inacio Lula da Silva did not discuss Trump’s tariff threats during Modi’s recent visit to Brazil. “We didn’t have an opportunity to discuss that,” he said.
Mohan Kumar, a former Indian ambassador and trade negotiator, echoed this position, saying: “India has always made it clear that local currency trade is not the same as de-dollarisation. We’ve kept our distance from any move toward a BRICS currency.”
### Stakes High for India-US Trade Deal
The potential trade deal with the U.S. is of major significance for India, especially as both sides hope to finalize it by the fall. After months of negotiations, Indian officials have reportedly made their best offer and are now waiting for a formal response from Washington.
Some observers believe Trump’s latest tariff threats may be a negotiating tactic aimed at extracting further concessions from India. He has previously warned of imposing up to 100% tariffs on BRICS nations if they abandon the dollar in bilateral trade.
Shashi Tharoor, a senior opposition leader and former diplomat, said that a successful trade agreement would demonstrate the strength of the India-U.S. partnership. “A deal would signal how far the relationship has come, despite the differences,” he said.
As tensions simmer, all eyes are now on whether trade diplomacy can overcome political posturing — or if economic cooperation will get caught in the crossfire of global power politics.
