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Trump’s 25% Tariff on India Puts BRICS Unity to the Ultimate Test

Simon Osuji by Simon Osuji
July 30, 2025
in Business
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Trump’s 25% Tariff on India Puts BRICS Unity to the Ultimate Test
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BRICS India tariff disputes have reached a critical point right now as President Trump threatened 25% tariffs on Indian imports Tuesday. The India-US trade deal latest news shows negotiations are stalled, actually putting serious pressure on the alliance. Trump-India relations are deteriorating even as BRICS economic tensions mount, while the US-India trade war is escalating at this very moment.

Also Read: Morgan Stanley Sees India Leading BRICS Global Growth Through 2026

India-US Trade Deal Delays Fuel BRICS Economic Tensions

BRICS Multipolarity & Emerging Geopolitical OrderBRICS Multipolarity & Emerging Geopolitical Order
Source: The Daily Economy

Trump Escalates BRICS India Tariff Threat

Trump escalated his threat against India during Tuesday’s press conference, creating more uncertainty around BRICS and India tariff policies. The President was direct about his intentions regarding tariffs on Indian goods.

Trump stated:

“They are going to pay 25%.”

When reporters asked specifically about whether India would face 20-25% tariffs, Trump confirmed:

“Yeah, I think so. India has been – they’re my friends.”

US Trade Representative Jamieson Greer actually said that the India-US trade deal latest news remains unclear right now. Progress has been slower than expected, even with both sides expressing interest.

Greer stated:

“They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them. But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.”

The trade numbers show why Trump-India relations have become tense. Last year, the US imported $87 billion from India while India bought only $42 billion in American goods. This gap has actually doubled over the past decade, contributing to BRICS economic tensions.

Trump has been critical of India’s tariff structure for months now. He’s repeatedly complained about what he sees as unfair treatment.

Trump stated:

“They charge more tariffs than any other country.”

The President also revealed what he told Modi directly during their meeting:

“You’re not treating us right.”

BRICS Alliance Faces Critical Test

At the time of writing, this India tariff crisis represents a major test for the BRICS alliance. Other member nations are watching how India handles US pressure, which could set precedents for future disputes.

Trump had previously imposed 26% tariffs on Indian goods back in April before pausing them. The current threat actually represents an escalation in the US India trade war, coming just before Trump’s August 1 deadline.

India’s response has been measured but firm. Foreign Minister Jaishankar pushed back against earlier claims about trade agreements being finalized. He called the announcement “premature” and said negotiations between New Delhi and Washington were “complicated” and “intricate.”

What’s Next for Trade Relations

The Trump administration is targeting what they call India’s “uniquely burdensome” testing requirements along with digital service taxes. Top US imports from India include pharmaceuticals, communications equipment, and apparel – sectors that would be hit hard by new tariffs.

With the August deadline approaching, BRICS India tariff tensions could actually reshape the entire alliance. The outcome will determine whether BRICS economic tensions intensify and how the bloc responds when individual members face US pressure.

Also Read: India Bashes BRICS Currency, Says USD Is Here to Stay

This India-US trade deal latest news situation represents a critical moment for BRICS unity as Trump-India policies challenge the alliance’s economic solidarity during the ongoing US-India trade war. The next few weeks will show whether the alliance can maintain cohesion when members face direct economic pressure from Washington.

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