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Trump Threatens Steep Tariffs as BRICS Builds Dollar-Free Financial Network

The looming 32 percent levy on Indonesian exports tests the country’s strategic autonomy

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Brazilian President Luiz Inacio Lula da Silva, South African President Cyril Ramaphosa, Indian Prime Minister Narendra Modi and Chinese Premier Li Qiang attend a meeting at BRICS Summit in Rio de Janeiro, Brazil, July 7, 2025. (AP photo by Eraldo Peres).
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Overview

  • President Trump announced that from August 1 any country aligning with BRICS will face an additional 10% tariff and warned of a 32% levy on Indonesian exports unless Jakarta meets U.S. manufacturing conditions.
  • BRICS leaders at the Rio de Janeiro summit issued a joint declaration condemning unilateral trade measures, calling for reforms at the IMF and World Bank and denouncing recent attacks on Iran.
  • The bloc is advancing plans for an alternative cross-border payment system designed to bypass Western-dominated financial institutions and reduce dependence on the U.S. dollar.
  • Indonesia now faces a delicate choice between asserting its autonomy as a new BRICS member and preserving access to U.S. markets and investment under looming tariff threats.
  • Persistent divergences in members’ ties to the West and strategic priorities continue to cast doubt on BRICS’s capacity to translate its multipolar ambitions into tangible outcomes.