Since Donald Trump's return to the presidency, the U.S. has increased trade pressure on BRICS countries, affecting their economic relations and cooperation.
Trade Pressure on BRICS
Upon returning to the White House, Donald Trump announced a hardline trade policy towards BRICS countries, marked by severe tariff hikes. The specifics include:
• China threatened with a tariff of up to 145%
• India facing a 50% tariff, with part of it specifically related to Russian oil purchases
• Brazil subjected to 50% tariffs on certain exports
• South Africa dealing with a 30% charge
• Egypt, a new entrant to BRICS, may see increased taxes due to its participation in the group.
Ajay Srivastava, a former senior Indian trade official, points out that these sanctions only fuel a common front: "they give them a common incentive to reduce their dependence on the United States, even if their agendas differ."
Pragmatic Cooperation among BRICS Countries
As trade tensions with the United States rise, leaders of major BRICS countries are preparing to showcase their unity at the Shanghai Cooperation Organization summit in Tianjin, China. For the first time in six years, a trilateral summit between China, India, and Russia is planned.
The Kremlin is pushing for this direction to 'strengthen the core of the BRICS alliance' and ease historical tensions between New Delhi and Beijing. This is accompanied by signals of bilateral détente. Direct flights have been reopened, visa access improved, and discussions on rare earth supply, where China holds significant capacity, are underway.
Nevertheless, mistrust remains due to Beijing's closeness to Islamabad and the controversial dam project on the Tibetan plateau, which concerns New Delhi.
Conclusion on the Future of BRICS
Despite existing frictions, a pragmatic logic appears to be emerging in BRICS, transforming it into a platform for mutual exchange. Initiatives for local currency settlements, 'Buy BRICS' campaigns, and ambitions to reform global governance through the WTO highlight potential alternatives to the dollar.
Donald Trump's sanctions serve as a catalyst for closer cooperation among BRICS countries, which may lead to significant changes in global economic policy.
