Emerging powers condemn US tariffs as trade war escalates

The BRICS alliance sharply criticised economic protectionism and “tariff blackmail” in a virtual summit on September 8, as tensions mount amid a trade war driven by US President Donald Trump.

According to Arab News via AFP, the meeting was held via videoconference at the initiative of Brazilian President Luiz Inacio Lula da Silva, and was called to address the rising “intensification of unilateral measures.”

BRICS is a leading political and economic bloc comprising major emerging economies – Brazil, Russia, India, China, and South Africa – representing roughly 40 percent of global GDP and nearly half of the world’s population.

The members of the group said they were among the worst affected by “tariff blackmail” and “unjustified and illegal” trade practices.

Chinese President Xi Jinping urged the defence of “the multilateral trading system with the World Trade Organisation at its core” and called for rejection of “all forms of protectionism.”

The United States and China, the world’s largest economies, have imposed steep retaliatory tariffs on each other in recent years, with rates at one point climbing into triple digits before being reduced.

Trump levied a 50 percent tariff on Brazilian exports, saying he was retaliating against a “witch hunt” targeting his ally, former president Jair Bolsonaro. Bolsonaro is currently on trial for allegedly plotting to overturn the 2022 election after losing to Lula, with a verdict expected soon.

Lula stated that greater trade and financial integration among BRICS nations could help counter protectionism. He warned that “tariff blackmail is being normalised as an instrument to conquer markets and interfere in domestic affairs,” without directly citing the US.

India was also hit with US tariffs of up to 50 percent, as Washington accused New Delhi of indirectly supporting Russia’s war in Ukraine through its oil purchases. Trump recently characterised the US–India relationship as “one-sided,” asserting it disproportionately favoured India.

As a result of these tariffs, and with the prospect of further duties looming, the Indian rupee fell to an all-time low against the US dollar on August 29. Indian Foreign Minister Subrahmanyam Jaishankar argued that “increasing barriers and complicating transactions will not help.”

Russian President Vladimir Putin joined the session just days after attending the Shanghai Cooperation Organisation summit in China with Xi, North Korea’s Kim Jong Un, and India’s Narendra Modi, where leaders condemned America’s “bullying behaviour.”

Amid escalating tensions with Washington, South Africa was hit with a 30 percent tariff, the harshest in sub-Saharan Africa. President Cyril Ramaphosa told BRICS counterparts that “unilateral tariff actions are contributing to an increasingly protectionist environment which poses great hardships and danger for the countries of the Global South.”

In July, Trump warned that the US would impose further penalties on any countries supporting the BRICS group’s “Anti-American policies,” after the group had criticised his trade war as destabilising the global economy.

Arab News via AFP, Maghrebi.org, Reuters