WASHINGTON:US President Donald Trump announced a new reciprocal tariff policy on Thursday, warning BRICS nations of 100% tariffs if they attempt to undermine the US dollar. The move marks a significant escalation in global trade tensions, potentially impacting both American allies and economic competitors.
During a discussion in the Oval Office, Trump emphasized that some US allies engage in trade practices that are even more harmful than those of its adversaries. He specifically criticized the European Union (EU) for what he described as “brutal” trade policies toward the United States.
Since beginning his second term on January 20, Trump has imposed a series of tariffs on major trading partners, justifying them as necessary to counter unfair trade practices and leverage negotiations on key policy matters.
Trump argued that tariffs serve multiple purposes, including generating revenue, addressing trade imbalances, and exerting pressure on nations to comply with US demands. Acknowledging that tariffs could lead to higher prices domestically, he expressed confidence that any increases would be temporary.
“If any trade goes through, it will face a 100% tariff at minimum,” Trump stated when asked about the BRICS alliance—which includes Brazil, Russia, India, China, and South Africa—exploring an alternative currency system. He also criticized certain European nations for imposing a 20% Value-Added Tax (VAT).
On foreign policy, Trump called for discussions with Russia and China to reduce military expenditures, reaffirming his support for global denuclearization. He questioned the necessity of expanding nuclear arsenals when diplomatic solutions could be pursued.
Trump also addressed the ongoing debate over TikTok, noting that the enforcement of a ban on the popular short-video app could be postponed beyond the current 75-day deadline. He reiterated his preference for negotiating a deal to allow the app to continue operating in the US.
Regarding the semiconductor industry, Trump expressed concern that Taiwan had overtaken the US in chip manufacturing and vowed to restore America’s dominance in the sector.
Looking at geopolitical realignments, Trump stated that he would welcome Russia’s return to the Group of Seven (G7), arguing that removing Moscow from the forum in 2014 following its annexation of Crimea was a mistake.
He also confirmed that he anticipated a meeting with Russian President Vladimir Putin to discuss ending the war in Ukraine. Trump emphasized that Ukraine would play a direct role in any peace negotiations, insisting that the conflict must come to an end.
Earlier, Trump signed a proclamation increasing US tariffs to align with the tax rates that other countries impose on imports.
