During the BRICS summit in Rio de Janeiro on July 7, Trump unleashed new tariff threats—extending the July 9 deadline for trade deals to August 1 and promising up to 40% tariffs, including a 10% surcharge on nations ‘aligned with anti‑American policies’ This latest salvo has rattled financial markets, sending ripple effects across Asian equities and currencies .
🇧🇷 Lula’s Fiery Rebuke
Lula’s response was emphatic. He denounced Trump’s announcement—made publicly via social media—as “neither responsible nor serious,” arguing that such unilateral threats undermine multilateral diplomacy At the summit, he stated:
“The world has changed. We don’t want an emperor.”
Lula emphasized that the BRICS members are not anti-American, but seek a multipolar global order. He reiterated the bloc’s drive toward building alternatives to the U.S. dollar, advocating for a more balanced global economic architecture
🤝 A Broader BRICS Backlash
Lula’s stance echoed across BRICS:
- South African President Cyril Ramaphosa warned against weaponizing tariffs and called for dialogue
- China’s spokesperson Mao Ning countered that tariffs disrupt trade, not diplomacy, underlining BRICS’ “win‑win cooperation” ethos
- Russian leaders affirmed their commitment to mutual respect and sovereign rights .
The summit’s final communique slammed rising tariffs and military actions, signaling deep concern at emergent protectionist pressures .
📈 Market Repercussions & Diplomatic Crossroads
Markets reacted swiftly: Asian stocks and currencies dipped, while safe‑haven bonds rallied amid rising risk aversion Trump’s letters, setting new tariffs for Japan, South Korea, and Malaysia, further chilled sentiment.
European leaders moved swiftly. Commission President Ursula von der Leyen expressed confidence in achieving a U.S.–EU deal, aimed at mitigating the impact on car and steel exports. Meanwhile, Secretary of the Treasury Scott Bessent highlighted ongoing trade talks and pledged more discussions with China on rare‑earths and semiconductors .
⚖️ What’s at Stake
- Global trade norms are under severe strain as the world witnesses renewed coercive tariff tactics by the U.S.
- BRICS unity is being tested, with member nations drawing a clear line in the sand over U.S. economic intimidation.
- Potential dollar alternatives within BRICS reflect growing interest in diversifying away from U.S. currency dominance .
- Emerging geopolitical fault lines may intensify as tariff threats deepen mistrust and push markets toward protectionist instincts.