Trump Threatens Extra 10% Tariff on BRICS Group Nations Ahead of Jakarta’s $34b Pact
Jakarta. US President Donald Trump has threatened to slap an extra 10 percent tariff on countries that aligned themselves with BRICS ahead of Washington’s signing of a $34 billion deal with Indonesia.
President Prabowo Subianto and other BRICS leaders are currently in Rio de Janeiro for their two-day talks. The meeting resulted in a Rio de Janeiro declaration that indirectly slammed the US reciprocal tariff policy, even calling such measures inconsistent with the rules set by the World Trade Organization (WTO). This document, which did not give a direct mention of the US, appears to have ruffled Trump’s feathers as he lashed out at BRICS on social media.
“Any country aligning themselves with the anti-American policies of BRICS will be charged an additional 10 percent tariff. There will be no exceptions to this policy,” Trump wrote in a Truth Social post on Sunday.
Trump did not expand on what he meant by “anti-American policies”, although the comment came shortly after the Rio de Janeiro declaration came out. BRICS members include Brazil, Russia, India, China, and South Africa. The bloc has also expanded with Egypt, the United Arab Emirates, Iran, Ethiopia, and Indonesia. Trump has been critical of BRICS, even threatening to slap a 100 percent tariff on goods coming from the group’s members should they set up a rival currency to the dollar.
Just like the rest of the world, BRICS nations are about to face an additional tariff hike on their US-bound goods as part of Trump’s infamous “reciprocal tariff” policy. These extra duties have already started at 10 percent for Washington’s trading partners, but Trump has threatened to increase the tariff hikes on some countries. Indonesia is set to face an additional 32 percent reciprocal tariffs -- one of the highest in the BRICS grouping.
Trump’s latest threats also came just ahead of a memorandum of understanding (MoU) signing between Indonesia and the American business partners on July 7 or Monday. Chief negotiator and senior minister Airlangga Hartarto said that the $34 billion MoU would include Indonesia’s commitment to buy more American fuels and agricultural products, as well as investment plans involving the sovereign fund Danantara. The MoU is part of Jakarta’s efforts to strike a tariff relief deal with the US. The proposed fuel purchase alone is worth approximately $15.5 billion.
Senior economist Bhima Yudhistira recently told the Jakarta Globe that Indonesia should be careful with its US fuel import plans. He said: “Indonesia needs to make sure that any fuels imported from the US, including liquefied petroleum gas [LPG], are cheaper than our existing suppliers.”
Trump has given trading partners a negotiating window until July 9, but there are plans to have the higher tariffs take effect on August 1.
Tags: Keywords:Related Articles
From 32% to 10% to 18%: Indonesia Lives Under Trump's Tariff Uncertainties
Indonesia has been trying to navigate US trade uncertainties, but officials are confident that the tariffs won't derail exports.US to Give Tariff Exemptions for Indonesian Spare Parts, Plantation Commodities
Indonesia has signaled US tariff exemptions for its exports of spare parts and plantation commodities,Final US Tariff on Indonesia to Reach 18%
Indonesia also says its US-bound textile exports will get tariff reductions.US Slaps 10% Forced Labor Tariff on Indonesia
The US has slapped an additional 10% tariff on Indonesia for letting imported goods linked with forced labor enter the country.Indonesia Slams 'Disproportionate' Tariffs at BRICS Talks
BRICS foreign ministers are gathering in New Delhi, and some members have made indirect references to US tariffs.Wars Cost Trillions of Dollars, Indonesia Tells BRICS
In a meeting joined by UAE and Iranian officials, Indonesia reminds BRICS that "the cost of war is ultimately the cost of lost opportunity."Indonesia to Pursue ‘Intensive' Talks with US After Unfair Trade Probe
Washington has launched a probe into Indonesia to determine whether Indonesia's production surpluses have jeopardized American production.Indonesia to Defend Solar Panel Exports as US Imposes Up to 143% Duties
Indonesia will defend its solar panel exports after the US imposed provisional duties of up to 143% in an anti-subsidy probe.Beyond Tariffs: Indonesia’s Uneven Pact with Washington
A study indicates that the risks from the reciprocal trade agreement could outweigh the benefits.Trump Says Most Countries Want to Keep Pre-Ruling Trade Deals
Trump did not say if Jakarta was one of the countries that want to keep their existing trade deals.The Latest
Dear Mr. President, Don’t Skip ASEAN Summits
Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.PLN Rushes Coal Supplies After Power Outages Hit Java
PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.Japan-Backed ADB Invests in Indonesia’s Human Capital
As many as 399 Indonesian awardees have joined the ADB-Japan Scholarship Program from 1988 to 2024.Indonesian Stocks Rise Despite Foreign Outflows as MSCI Review Looms
Indonesia's JCI rose 2.8% as easing geopolitical tensions offset foreign outflows, MSCI concerns and rupiah pressures.World Cup 2026: Paraguay Holds Off Turkey With 10 Men to Keep Knockout Hopes Alive
Matias Galarza scored after 65 seconds as 10-man Paraguay beat Turkey 1-0, eliminating the Turks and securing first place for the US.Most Popular
