BRICS Summit Carries On Despite Trump’s 10% Tariff Threat

US President Donald Trump asserted that his threat of a 10 per cent tariff on members of the BRICS scared them off, and almost no one showed up for a meeting the following day, but the BRICS summit continued.

President Trump declared an ultimatum on the night of July 6. But the next day, leaders of the 11 BRICS countries met for the second day of their summit with full turnout.

On Friday, calling BRICS ‘ this little group’ of ‘six countries basically’, he said, “They wanted to try and take over the dollar, the dominance of the dollar, and the standard of the dollar.”

“And I said, anybody that’s in the BRICS consortium of nations, we’re going to tariff you 10 per cent,” he added. “And they had a meeting the following day, and almost nobody showed up. Seriously.”

President Trump stated they felt like, “Leave me alone. We didn’t want to [be tariffed].”

“They didn’t want to be tariffed. There, it’s amazing”, he added.

India’s Response to BRICS Currency

Although President Trump has frequently talked about a BRICS currency, the idea has been rejected by India.

India is a founding member of the group and its second-largest economy.

External Affairs Minister S Jaishankar has affirmed that there is no policy to replace the dollar as the reserve currency. He stated that it ‘is the source of international economic stability’.

President Trump said, “If they really form [a BRICS currency] in a meaningful way, it will end very quickly”.

“They won’t be gone very long. I don’t think they’ll even do it. They’re virtually afraid to [even] meet,” he added.

The US president posted on July 6, “Any Country aligning itself with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff.”

However, the BRICS leaders continued their summit for the second day in Rio de Janeiro.

What is the GENIUS Act?

President Trump, known for his overstatements and hyperbolic remarks, made the claims at the signing of the GENIUS Act at the White House.

The law enacted by Congress with the support of legislators from both parties governs digital currency. It sets the standards and consumer safeguards for a category of digital currencies called stablecoins.

The act’s acronym stands for ‘Guiding and Establishing National Innovation for US Stablecoins‘, and, among things, it would require financial institutions issuing stablecoin cryptocurrency to back them with solid assets like the dollar.

White House Crypto Czar David Sacks stated, “For every digital dollar in a crypto wallet, there’ll be a traditional dollar in a US bank account, which will create trillions of dollars in demand for US Treasuries [bonds].”

“Consumers, vendors, and people all over the world will then be able to use those stable coins for ultra-low cost and secure the dollar’s status as the world’s reserve currency for generations to come,” said President Trump.

He emphasised that having the dollar as the global reserve currency is important for the US.

The US President further said, “If we lost that, that would be like losing a world war. We can never let anyone plahTy games with us.”

“And that’s why, when I heard about this group from BRICS, six countries, basically, I hit them very, very hard,” he added.

President Trump announced that a tariff deal was ready, but did not specify the country involved.

Also Read: President Trump Announces Upcoming Trade Deals; Signs Landmark Stablecoin Act Into Law