The BRICS economic bloc concluded its 17th annual summit in Rio de Janeiro this past weekend. This latter group is represented by the BRICS — Brazil, Russia, India, China, and South Africa — and new members added last month — Indonesia, Egypt, Iran, and the United Arab Emirates. At this historic summit, BRICS leaders released a consensus joint declaration. From the outset, they stressed their aims to fortify emerging economies and explicitly responded to alarming overtures from former U.S. President Donald Trump on possible tariffs to member states.
In their joint declaration, BRICS leaders stressed the need for more multilateralism and reform of global governance. They brought attention to the alarming trend of unilateral tariffs invading international trade. They highlighted the negative effects these types of measures have on distorting trade and overall conflicting with World Trade Organization (WTO) rules. The declaration warned that these tariffs could reduce global trade, disrupt supply chains, and introduce uncertainty into international economic activities.
It’s a stark warning that Donald Trump has made. He wants to slap an extra 10 percent tariff on those countries that he says back the “Anti-American policies of BRICS.” And when he did talk about the bloc’s interests, he cast them as antithetical to those of the United States. This produced a sharp juxtaposition in the emerging two trade relationships.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff,” – United States President Donald Trump
In reaction to these threats, Brazilian President Luiz Inácio Lula da Silva took exception to Trump’s style. He also said that the world doesn’t want an “emperor” who jumps up and down on Twitter. BRICS, he said, was not seeking to provoke the US. Rather, the delegation hopes to foster collaboration with, and learning from, one another through candid conversations.
“I don’t think it’s very responsible or serious for the president of a country as big as the United States to go around threatening the world through the internet,” – Brazilian President Luiz Inácio Lula da Silva
BRICS leaders passed a joint declaration to signal their anti-tariff agenda. They strongly argued that these measures were harshly inconsistent with fair trade practices. They reiterated their determination to work together to foster a more inclusive, rules-based global economic landscape that works for all countries.
South African President Cyril Ramaphosa recently expressed his opinion on the worsening crisis. He made the case for understanding new centers of power emerging around the globe. He called for a shift in perspective on the rise of multiple centers of power as a good thing rather than something to be afraid of.
“I became aware of what President Trump tweeted, and I think there needs to be greater appreciation of the emergence of various centres of power in the world,” – South African President Cyril Ramaphosa
He reiterated that BRICS nations are committed to establishing a fair global economic order. At the same time, we’ll ensure that this framework protects the interests of all countries.
America’s global economists are hungrily poring over Trump’s proposed tariffs. More than a few counter that these misguided protectionist policies will only increase costs for American consumers and exacerbate our nation’s growing economic inequality. To avoid sparkling new regulatory boondoggles, they warn that tariffs may indeed look good on paper. In practice, they invariably do the opposite—hurt international trade and imperil the economy.
