Washington D.C., July 9, 2025 – U.S. President Donald Trump has warned India and other BRICS countries Brazil, Russia, China, South Africa, and others with a 10% tariff, saying they’re trying to weaken the U.S. dollar. This bold move has put India, a key U.S. trade partner, in a tough spot, raising worries about higher prices and trade tensions.
What’s the Issue?
Trump, in a recent speech, called the U.S. dollar “king” and said BRICS nations, including India, are pushing “anti-American” plans to challenge it. He’s threatening an extra 10% tax on their exports to the U.S. by August 1, 2025, unless trade deals are signed. This comes after BRICS leaders, at a recent meeting in Brazil, criticized U.S. tariffs and called for fairer global trade rules.
Why India’s Caught in the Middle
India trades a lot with the U.S. $120 billion last year alone! Talks for a new trade deal are on, but Trump’s warning puts pressure on India because it’s part of BRICS. He says no country, not even India, will get a free pass. India’s leaders, like External Affairs Minister S. Jaishankar, have said we’re not against the dollar we just want easier trade options, like using rupees for some deals. But Trump’s not convinced.
What’s BRICS Up To?
BRICS wants a world where the U.S. dollar isn’t the only big currency for trade. They’re exploring ideas like a new BRICS currency or digital payments to reduce dollar use, especially after countries like Russia faced U.S. sanctions. Trump sees this as a threat and is hitting back with tariffs.
How This Affects India
If the 10% tariff happens, things India sells to the U.S. like clothes, medicines, and tech services could get costlier. This might hurt our businesses and raise prices for everyone. Indian export groups are urging the government to talk to the U.S. and clear up misunderstandings. They also want India to push digital payment systems like UPI to stay strong in BRICS.
What’s Next?
Trump’s given BRICS countries until August 1 to make trade deals, or face higher tariffs maybe even 25%! India’s trying to balance its role in BRICS with keeping good ties with the U.S. The next few weeks will be crucial to avoid a trade war that could make things tougher for Indian businesses and shoppers.
For now, Trump’s “King Dollar” warning has everyone talking, and India’s got to play smart to protect its interests.
Last Updated on: Wednesday, July 9, 2025 1:23 am by Mohammad Hussain Shaik | Published by: Mohammad Hussain Shaik on Wednesday, July 9, 2025 1:23 am | News Categories: Politics, News, Trending