As Trump Tariffs Loom, BRICS Defiant, Modi Walks On Razor's Edge At Brazil

The 90-day pause button on country-specific reciprocal tariffs announced by the Trump administration ends on July 9, triggering uncertainty, even as a host of countries scramble to conclude trade deals with the US.

On Monday, while China clarified that BRICS does not seek confrontation, the bloc issued a statement saying that member countries “reaffirm our commitment to the BRICS spirit of mutual respect and understanding, sovereign equality, solidarity, democracy, openness, inclusiveness, collaboration and consensus.”

On its part, India is keen to expand its economic cooperation with the member countries, especially to ensure a steady supply of critical minerals. “We need to work together to make supply chains for critical minerals and technology secure and reliable. It’s important to ensure that no country uses these resources for its selfish gains or as a weapon against others," PM Modi said at the summit.

Global Trade At The Crossroads

The statement, however, pointed out that the global multilateral trading system [WTO] has long been at a crossroads. “The proliferation of trade-restrictive actions, whether in the form of indiscriminate raising of tariffs and non-tariff measures, or protectionism under the guise of environmental objectives, threatens to further reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities, potentially exacerbating existing economic disparities, and affecting prospects of global economic development,” it said.

The US tariff war has driven India and other countries to aggressively diversify their export markets. “We need to protect our economy, although we want to keep increasing trade with our existing partners,” a senior government official told The Secretariat. “A multilateral system needs to be upheld,” the official added.

India’s focus on manufacturing growth and its commitment to achieving the stiff target of Net Zero by 2070 have amplified its need to secure a reliable supply chain for critical minerals.

India needs to achieve mineral security on its way towards a US$ 5 trillion economy. The Centre is aggressively pushing for electric vehicles (EVs) and batteries as part of the transition exercise. Its production-linked incentive (PLI) scheme is expected to drive demand for critical minerals.

The BRICS Position

The BRICS statement said that the members condemned “the imposition of unilateral coercive measures that are contrary to international law, and reiterate that such measures, inter alia in the form of unilateral economic sanctions and secondary sanctions, have far-reaching negative implications for human rights, including the rights to development, health and food security of the general population of targeted states, disproportionally affecting the poor and people in vulnerable situations.”

Shortly after, Trump posted on Truth Social: "Any country aligning themselves with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!"

India At The BRICS

Modi, who is in Brazil to attend the 16th BRICS summit, said that New Delhi and the bloc will work to ensure that the Global South gets its due, besides promoting economic cooperation between each other. 

The BRICS originally comprised Brazil, Russia, India, China, and South Africa. It added six new members in 2024-25: Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE. Brazil’s BRICS presidency is focused on international governance reforms and Global South cooperation. India will chair the BRICS summit in 2026. 

“In the form of the BRICS New Development Bank, we have offered a strong and credible alternative to support the development aspirations of countries in the Global South,” Modi said at the summit.