Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

US President Donald Trump and Secretary of Commerce Howard Lutnick speak to reporters before boarding Air Force One at Morristown Municipal Airport in Morristown, New Jersey, on July 6, 2025, en route to Washington after spending the weekend at his residence in Bedminster, New Jersey. (AFP)
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Updated 07 July 2025
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Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil

  • Trump’s administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant “retaliatory tariffs” 
  • In a joint statement, the group warned the rise in tariffs threatened global trade

RIO DE JANEIRO: President Donald Trump said the US will impose an additional 10 percent tariff on any countries aligning themselves with the “Anti-American policies” of the BRICS group of developing nations, whose leaders kicked off a summit in Brazil on Sunday. 

With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive “America First” approach of the US president, the BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars. 

In a joint statement from the opening of the BRICS summit in Rio de Janeiro released on Sunday afternoon, the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump’s tariff policies. 

Hours later, Trump warned he would punish countries seeking to join with the grouping. 

“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. Thank you for your attention to this matter!” Trump said in a post on Truth Social. 

Trump did not clarify or expand on the “Anti-American policies” reference in his post. 

Trump’s administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant “retaliatory tariffs.” 

The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, and the UAE as members. Saudi Arabia has held off formally joining, according to sources, while another 30 nations have expressed interest in participating in the BRICS, either as full members or partners. 

Indonesia’s senior economic minister, Airlangga Hartarto, is in Brazil for the BRICS summit and is scheduled to go to the US on Monday to oversee tariff talks, an official told Reuters. India’s foreign ministry did not immediately respond to a request for comment. 

In opening remarks to the summit earlier, Brazil’s President Luiz Inacio Lula da Silva drew a parallel with the Cold War's Non-Aligned Movement, a group of developing nations that resisted joining either side of a polarized global order. 

“BRICS is the heir to the Non-Aligned Movement,” Lula told leaders. “With multilateralism under attack, our autonomy is in check once again.” 

BRICS nations now represent more than half the world’s population and 40 percent of its economic output, Lula noted in remarks on Saturday to business leaders, warning of rising protectionism. 

GROWING CLOUT, COMPLEXITY 

Expansion of the bloc has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the UN Security Council and the International Monetary Fund. 

“If international governance does not reflect the new multipolar reality of the 21st century, it is up to BRICS to help bring it up to date,” Lula said in his remarks, which highlighted the failure of US-led wars in the Middle East. 

Stealing some thunder from this year’s summit, Chinese President Xi Jinping chose to send his premier in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court related to his war in Ukraine. 

Still, several heads of state were gathered for discussions at Rio’s Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa. 

However, there are questions about the shared goals of an increasingly heterogeneous BRICS group, which has grown to include regional rivals along with major emerging economies. 

In the joint statement, the leaders called attacks against Iran's “civilian infrastructure and peaceful nuclear facilities” a “violation of international law.” 

The group expressed “grave concern” for the Palestinian people over Israeli attacks on Gaza, and condemned what the joint statement called a “terrorist attack” in India-administered Kashmir. 

The group voiced its support for Ethiopia and Iran to join the World Trade Organization, while calling to urgently restore its ability to resolve trade disputes. 

The leaders’ joint statement backed plans to pilot a BRICS Multilateral Guarantees initiative within the group’s New Development Bank to lower financing costs and boost investment in member states, as first reported by Reuters last week. 

In a separate statement following a discussion of artificial intelligence, the leaders called for protections against unauthorized use of AI to avoid excessive data collection and allow mechanisms for fair payment. 

Brazil, which also hosts the UN climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on US climate initiatives. 

China and the UAE signaled in meetings with Brazilian Finance Minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility, according to two sources with knowledge of the discussions about funding conservation of endangered forests around the world. 


New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

Updated 15 min 35 sec ago
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New SPARK launch ushers Eastern Province from black gold to EV charging and AI mobility

DAMMAM: The lavender carpet was rolled out and the symbolic shovels were placed in decorative sandboxes as Smart Mobility broke ground, bringing Saudi-made EV charging to life at its first manufacturing facility at King Salman Energy Park in Dammam.

As part of the ceremony, Smart Mobility inaugurated SPARK’s first electric vehicle charging station.

The project brought together Foxconn Interconnect Technology, a unit of Taiwan’s Foxconn that makes components used for connectivity, and Saudi’s Saleh Suleiman Alrajhi & Sons. 

It also represented a significant milestone in supporting foreign investment in the Kingdom and a major step toward localizing advanced manufacturing capabilities in order to support the rapidly-growing EV market.

“As we gather today to celebrate a groundbreaking of an important edition in this ecosystem …we’re creating a community— with all that comes with a community,” SPARK President and CEO Mishal Al-Zughaibi said.

He highlighted the park’s proximity to the Kingdom’s core energy infrastructure.

It will be headquartered in the Eastern Province, notably near to where Aramco’s Well No. 7, later named “Prosperity Well,” struck black gold in 1938, six years after the country unified as a Kingdom. That discovery changed the country — and the world. 

In recent years, there has been a tremendous effort to diversify beyond oil and, once again, the Eastern Province is at the forefront, but this time, it is using innovation and AI to catapult the Kingdom into that new realm. 

The location was also ideal, it was noted, on several levels, including how it would allow for ample access to ports, and the planned integration with the future GCC Railway network would additionally create a unified regional manufacturing and export corridor. 

According to Smart Mobility, SPARK facility was created with the aim to produce Saudi-made EV charging solutions, including the Charging Point Management System. Three products are already certified by the Saudi Standards, Metrology and Quality Organization. 

Launching in 2026, the project aims to align with Vision 2030 and to support local content goals, which will be overseen by the Local Content and Government Procurement Authority.

Smart Mobility CEO, Prince Fahad Nawaf Al Saud, who was on hand, said the decision to build at SPARK was strategic.

“SPARK is the Kingdom’s primary hub for energy, logistics and industrial innovation. For EV infrastructure to scale reliably, it must be integrated with the country’s most critical energy assets,” he said.

Prince Fahad also addressed the evolving and morphing nature of the industry, saying: “Mobility is being reshaped by artificial intelligence. Vehicles are becoming intelligent systems that think, react and connect. Level-4 autonomous capability is accelerating globally and these systems depend on electric platforms.”

He added that if the Kingdom aims to lead in AI, automation and smart city technologies, it must develop EV infrastructure as a foundational national pillar.

“EVs are not simply a fuel alternative — they are the operating system of the AI era,” he said.

Prince Fahad stated: “This groundbreaking ceremony is not only a milestone for Smart Mobility, it is a milestone for the Kingdom.”

He added: “Guided by his Royal Highness Crown Prince Mohammed bin Salman, we built this with the support from the Ministry of Energy, Ministry of Industry, and Ministry of Investment and many government entities that continue to empower our national ambitions to localization and advanced manufacturing.” 

Continuing to address the crowd, Prince Fahad said: “Some people in Saudi love petrol cars, fuel is cheap — why would anyone shift it to electric? And they are right (to question that). Traditional vehicles are still deeply loved, but we must also recognize the truth.” 

The truth, to him, is that AI is “no longer science fiction,” it is reality now. “We are entering an age where we must respond quickly to global changes … we have much work ahead to test, to certify, to scale and to deliver on the promise,” he said.

“The world is entering a new chapter defined not by horsepower but by computing power — and Saudi Arabia must lead, not follow in this transition,” Prince Fahad added. 

FIT Chairman and CEO Sidney Lu noted that next year the Chinese calendar will welcome the Year of the Horse, an apt metaphorical transition as it signals powerfully moving forward from old to now.

He was excited to be on the ground on his first visit to the Eastern Province. 

“FIT brings decades of experience in precision manufacturing, high-reliability electronics, and large-scale global production,” Lu said, adding: “Our shared objective is clear: bring world-class technologies into Saudi Arabia, embed them locally and position Saudi-made solutions for future export.”

While Lu headed back to his home in Taiwan following the meeting “to recharge,” he said the joint venture will be showcasing FIT’s global manufacturing expertise with Saudi Arabia’s industrial ambitions — and that gives him much energy. 

 “I love this place. Every time I come over here, I get inspired; inspired by the spirits, by the energy, by the youth. And I really get inspired with how people are willing to move forward,” Lu told Arab News.