More economic turmoil looms as Donald Trump threatens additional tariff for BRICS supporters

US President Donald Trump has threatened an additional 10% tariff on any country aligning with the BRICS nations' policies, which could have severe implications for South Africa.

"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," Trump wrote on his Truth Social platform on Sunday night.

This levy would be implemented over and above the base 10% tariff that is already being planned for all of the country’s global trade partners.

The new tariff threat was in direct response to criticisms of Trump’s unilateral tariff measures, made by BRICS members during a summit held in Rio de Janeiro on Sunday. A joint BRICS statement released after the summit said the upcoming tariffs risked hurting the global economy.

At the event, BRICS leaders also collectively condemned the recent Israeli and US air strikes on Iran, expressing “serious concern over deliberate attacks on civilian infrastructure and peaceful nuclear facilities,” and labelling the strikes a “violation of international law”.

Trump's tariff deadline looms

Trump’s new threats come at the beginning of a crucial week for the global economy as the US President’s July 9 tariff deadline looms. While the White House is expected to start sending out letters to its trade partners this week, outlining the new tariffs, Commerce Secretary Howard Lutnick confirmed during a press conference over the weekend that the new tariffs will now take effect from August 1.

The sweeping global tariffs were originally planned for April 1, but Trump announced a three-month delay after global markets reacted negatively to the looming trade war.

South Africa has requested an extension of the 90-day tariff pause, after the US announced its intention to introduce a new trade template for countries in sub-Saharan Africa.

The US President said he would impose unilateral levies on trade partners unless a deal could be struck by August 1, AFP reported.

South Africa stands to lose billions in export revenue should the country face higher tariffs from the US, as well as the potential loss of the African Growth and Opportunity Act (AGOA), which provides duty-free access to that market. SA exports under AGOA amounted to $3.6 billion (R64bn) in 2022.

The agricultural and automotive sectors could be particularly hard hit. Although in the latter case only BMW and Mercedes export cars from South Africa to the US, these volumes are significant enough to make it the country’s third biggest auto export destination.

BRICS, consisting of 11 emerging nations, including Brazil, Russia, India, China and South Africa, along with more recent entrants such as Iran, accounts for about half of the world’s population and 40% of global economic output.

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