BRICS Declaration Sparks US Tariff Threats
As soon as the declaration of the BRICS summit was released in Rio de Janeiro, Brazil, US President Donald Trump has threatened to impose 10 percent additional tariff on countries joining BRICS' anti-American policies. This threat has come at a time when the US government is preparing to finalize trade agreements with many countries, including India, before the deadline for imposing tariffs. After Trump's threat, Brazilian President Lula da Silva has reacted sharply and said in clear words that "the world has changed, we do not want any emperor." BRICS is looking for another way to organize the world from an economic point of view. This is the reason why BRICS is making Trump uncomfortable. BRICS is looking for an alternative to the US dollar in global trade. China has also given a balanced reaction to Trump's threat, but other countries have opposed Trump.
In February, Trump had warned that if BRICS tries to reduce the role of the US dollar, they will have to face 100 percent tariff. Trump's threat will also affect India. Now the question is why is Trump targeting BRICS. This year the value of the US currency dollar fell sharply. Due to the slowdown in the US economy, Trump feels that everyone is conspiring against him. From 'improving global governance' to 'international stability' has been discussed in the Rio Declaration. Along with this, issues like unilateral tariff and non-tariff have also been discussed. It is believed that Donald Trump has threatened to impose tariff on this issue in the declaration.
However, the US has not been named in the declaration. The Rio Declaration states that the BRICS nations express deep concern over the increasing use of unilateral tariff and non-tariff measures, which are disrupting the way trade is done and violate the norms of the World Trade Organization (WTO). Apart from this, the declaration also states that applying unilateral forceful measures is a violation of international law and actions like unilateral economic sanctions have a harmful effect. The statement advocates trade according to WTO rules, as well as talks about the multilateral trade system. The BRICS group talks about a banking system that is parallel to the dollar. This is also a reason why Trump is adopting a tough stance. Trump's threat can also cause trouble for India and India has also signed the BRICS declaration in which US tariffs have been criticized.
However, Trump has announced fresh tariffs on 14 countries and said about the Indo-US trade deal that he is close to a deal with India. Trump has extended the deadline for imposing new tariffs to August 1, but now India has time till August 1. India wants that these tariffs should not be imposed, but for this America wants India to give more space to its agricultural and dairy products in its market. According to informed sources, India has offered to reduce the duty on America's pecan nuts, blueberries and some other agricultural products. India is also ready to give some concessions on animal feed and can also give concessions in duty on automobiles and some industrial products.
However, America wants India to reduce tariffs on its dairy products, genetically modified (GM) crops, especially agricultural products like maize and soybean, apples, almonds, pistachios. Informed sources say that India cannot allow American GM products like maize, soybean or rice, wheat to be sold in India at a lower duty. This will make it difficult for Indian farmers to sell their products. Despite this, it is being told that talks are going on with America and a mini trade deal can be announced soon.
It is clear that if America imposes high tariffs, the difficulties of global trade will increase. Sensing these difficulties, Prime Minister Narendra Modi is engaged in strengthening trade relations with other business partners. During Prime Minister Narendra Modi's foreign visits, it has also been demonstrated that India is strengthening trade relations with small and big countries. America wants to obstruct India's progress by using its dominance. India will have to proceed very cautiously and establish a system in the field of world trade and investment with like-minded countries. It remains to be seen what form the India-America trade agreement takes.