US President Donald Trump has warned that countries aligning with the “anti-American policies” of the BRICS bloc could face an additional 10% tariff. The threat came as BRICS leaders met in Rio de Janeiro and issued a joint statement on Sunday criticising protectionist trade measures.

Without naming the US, the bloc expressed “serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with World Trade Organisation (WTO) rules.” They warned such actions could disrupt global trade and worsen economic inequality.

President Trump’s remarks appeared to be a direct response, stating there would be “no exceptions” to the extra tariff. Former US trade negotiator Stephen Olson said the president likely viewed the bloc’s ambition to reduce US influence in global finance as “anti-American,” though how that alignment would be assessed remains unclear.

The BRICS grouping—now including Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the UAE, Ethiopia, Indonesia and Iran—also condemned recent strikes on Iran, without naming the US or Israel.

China responded by reiterating its opposition to using tariffs as coercive tools, stating that trade wars benefit no one.

Meanwhile, President Trump confirmed the US will begin issuing letters to trading partners outlining country-specific tariffs and agreements, in line with comments by Treasury Secretary Scott Bessent. Tariffs announced in April 2025 will now take effect on 1 August for countries without agreements, replacing the earlier 9 July deadline.

Bessent denied this was another delay, emphasising that 1 August was final. The 90-day pause on the tariffs is due to expire on 9 July, prompting concern among investors and global partners.

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Bottom Line

Tariff turbulence continues to contribute to uncertainty and volatility in markets. Much like during President Trump’s first term, we expect the tariff rhetoric to persist in a drawn-out manner. That said, the typical investor’s time horizon is considerably longer than a single presidential term and it’s important for investors to keep this in mind during periods of market volatility.

Macroeconomics in brief