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Donald Trump’s BRICS threat puts India in a tough position ahead of trade deal: Report
The United States' fresh warning came just a day after Trump said he was close to finalising a trade deal with New Delhi.
Right ahead of a much-anticipated trade deal with Washington, US President Donald Trump issued a fresh warning to India, threatening additional tariffs over its continued participation in the BRICS.
Speaking on Tuesday, Donald Trump said India could face an additional 10% tariff alongside other members of BRICS — a bloc of emerging economies he has labelled “anti-American”.
The United States' fresh warning came just a day after Trump said he was close to finalising a trade deal that New Delhi hopes will spare it from 26% reciprocal tariffs.
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Trump's comments follow a two-day BRICS summit in Brazil, where leaders, including Prime Minister Narendra Modi, issued a joint statement opposing trade-distorting tariffs. While Brazil and South Africa hit back publicly, India has so far chosen silence.
Indian officials on Trump's 'BRICS' warning
Meanwhile, officials in New Delhi said they are not overly alarmed by Trump's latest threats.
The officials, speaking on condition of anonymity, told news agency Bloomberg that the US leader views BRICS as seeking to undermine the dominance of the US dollar, which is not India's goal.
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India doesn't support moves for a single BRICS currency, and any participation in local currency trade arrangements is aimed solely at reducing risks, they said.
Bloomberg said the ministry of commerce and industry didn't respond to an email seeking comment.
Senior Indian diplomat P Kumaran said at a press briefing on Tuesday that Prime Minister Narendra Modi and his Brazilian counterpart Luiz Inacio Lula da Silva had "no discussion" on Trump's tariff threats during the Indian leader's state visit there. "We didn't have an opportunity to discuss that."
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"Trump is unhappy with some BRICS members who have been talking about an alternate reserve currency," said Mohan Kumar, a former Indian envoy and lead negotiator at the World Trade Organization, who now teaches at OP Jindal Global University.
"India has repeatedly differentiated between local currency trade and de-dollarisation and therefore doesn't fall in that category."
India-US trade deal
Much is riding on the success of the India-US trade deal, which both countries have pledged to finalise by the fall of this year.
Shashi Tharoor, an opposition lawmaker who has led India’s diplomatic outreach since the Pakistan conflict, said a trade deal would signify the strong ties between the two countries.
After months of talks, Indian trade negotiators have put forward their best offer to the Trump administration and are now awaiting a response.
The latest tariff threats from Trump may also be a bargaining tool to secure more concessions from New Delhi. Trump has previously threatened to slap 100% levies on BRICS if they ditch the dollar in bilateral trade.
(with Bloomberg inputs)
