Victor EzejaThere are concerns that Nigeria and other BRICS-aligned countries may encounter fresh economic challenges if the United States President, Donald Trump, implements his threat to impose an additional trade tariff on them.
Trump had in a statement via his Truth Social, threatened to impose an additional 10 per cent tariff on any country aligning with what he termed the “anti-American policies” of the BRICS group. He emphasised there would be “no exceptions” to this policy.
Join our WhatsApp ChannelPrime Business Africa reports that BRICS leaders who are currently holding a summit in Rio de Janeiro, Brazil, condemned U.S. trade policies and military actions, particularly in the Middle East. They warned that such policy threatens global trade and is against the World Trade Organisation (WTO) rules.
Reacting to that, Trump stated: “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!”
Trump’s threat raises concerns about the implications on BRICS-aligned nations and the implication on global economy.
Trump had in April announced sweeping trade tariff which he termed reciprocal. He later extended the deadline for implementation of the policy to July 9.
BRICS was formed by Brazil, Russia, India, China and South Africa in June 2009, with focus on advancing multilateral policies. However, the group last year expanded to include the United Arab Emirates, Indonesia, Iran, Egypt, and Ethiopia. It also has 10 strategic partner countries, a category established last year, which includes Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan Nigeria and Vietnam.
Trump announced that he would issue the first tariff letters to different nations on Monday, just a few days before his deadline for trading partners to come to an agreement expires.
He said he would send a first round of up to 15 letters on Sunday, warning that if nations did not reach an agreement, US import taxes would return to the high levels he set in April.
READ ALSO: BRICS Summit: Leaders Condemn Tariff Increase, Attacks On Iran
Meanwhile, China has responded to Trump’s threat, saying BRICS is a group that seek to promote deeper beneficial economic cooperation. It said the group is not seeking open confrontation with any country or region.
“Regarding the imposition of tariffs, China has repeatedly stated its position that trade and tariff wars have no winners and protectionism offers no way forward,” foreign ministry spokeswoman Mao Ning said.
