Introduction to BRICS Nations
Donald Trump was accused of accidentally drawing attention to the BRICS Nations, a loose group of some of the fastest-growing emerging countries, by imposing higher tariffs on them than on other countries. China, the largest BRICS member, faces a tariff of 145% if it cannot conclude a contract with Trump, while Brazil and India were hit with a 50% tariff – half of India’s punishment is for purchasing Russian oil. South Africa received a 30% levy, and newer members like Egypt could see their tariffs rise due to their participation in BRICS.
Trump’s Approach to BRICS Nations
In the first seven months of his second term, Trump has repeatedly warned of the growing challenge to US dominance from any nation that he describes as having "anti-American politics". Former Indian trade officer Ajay Srivastava believes that BRICS nations assume "little intimidation" from Trump’s additional punishments. He said that the tariffs "give BRICS a common incentive to reduce their dependence on the United States, even if the ages differ".
BRICS Nations’ Response
These additional tariffs have conducted a common complaint among BRICS members, which are now expanding bilateral trade agreements in national currencies to reduce dependence on the US dollar. BRICS central banks have also increased gold purchases, another signal of their desire to diversify. While Trump claimed "BRICS is dead", a critic has accused the US president of "strategic misconduct" and argues that the Republican has transformed a loose coalition of countries into a more uniform block.
Growing Solidarity Among BRICS Members
A further representation of the growing solidarity of the BRICS members will be exhibited at the Summit of the Shanghai Cooperation Organization in Tianjin, North China. Chinese President Xi Jinping will host his Indian and Russian colleagues Narendra Modi and Vladimir Putin, as well as leaders from around 20 other countries from the global south. This will be Modi’s first visit to Chinese soil in seven years. In front of the summit, the Kremlin pushed for China, Russia, and India to have their first trilateral conversations in six years, a step to strengthen the core of the BRICS alliance.
India’s Approach to China
Trump’s huge tariffs have pushed New Delhi to strengthen economic relationships with China, to resume direct flights, to alleviate visa restrictions, and to increase trade discussions. The two countries have also held discussions to solve long-term disputes along their almost 3,500 kilometers long border. During a visit to India by Chinese Foreign Minister Wang Yi, Beijing agreed to increase deliveries of rare earth minerals to the South Asian country. China controls over 85% of the global processing of rare earth, while India urgently needs these minerals for clean energy, electric vehicles, and defense technologies.
Other BRICS Nations’ Relations with China
Brazil also tried to promote bilateral trade with China, its largest trading partner, during a phone call between Xi and the Brazilian President Luiz Inacio Lula da Silva. China accounts for 26% of Brazil’s exports – twice as high as that of the United States. A highly symbolic appearance of Putin and Xi during the Russia parade on Victory Day in May underlined the in-depth strategic orientation between Moscow and Beijing. According to the Kremlin, more than 90% of the bilateral trade between Russia and China is now being carried out in Yuan and Rubel.
Different Ambitions Within BRICS
BRICS is increasingly fragmented, with different national interests that could further restrict its ambitions. It is also becoming more authoritarian. Former Indian trade officer Srivastava said that BRICS is "less about perfect unity than pragmatic cooperation in trade, finance, and supply chains". While trading with BRICS nations has increased faster than trade between BRICS and G7 countries, a large part of it is in hydrocarbons.
Commercial Trade in Intra-BRICS
The advisory company Boston Consulting Group identified future signs that BRICS trade cooperation will increase, including a role in anti-dumping and other trade restrictions, a BRICS-wide free trade agreement, unanimous support for reforms to the World Trade Organization, and more foreign investments in BRICS nations. Mihaela Papa, director of research and lead scientist at the Center for International Studies, expects intra-BRICS trade to take on more urgency. A proposal supported by Russia for a single BRICS currency to challenge the dollar remains on the queue, indicating a future-shaped form of competing financial systems and more of a patchwork of overlapping networks.
