Higher US tariff threat for BRICS nations

Trump has accused nations in the bloc of “anti-Americanism”

- MASHUDU SADIKE [e-mail]

WHILE US President Donald Trump has hit South Africa with a 30% tariff on exports from August 1, a threat of an even higher tariff looms large for all BRICS nations.

President Cyril Ramaphosa, in a statement late on Monday, said he had received correspondence from Trump on the unilateral imposition of a 30% trade tariff against South Africa.

He said the 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the US which was being contested and was among the matters under consideration by the negotiating teams from both countries.

But South Africa could be dealt a bigger blow if Trump follows through with his threat to impose an additional 10% tariff on goods from BRICS nations.

According to Trump, the growth and expansion of BRICS, which was conceived two decades ago as a forum for fast-growing economies, pose a threat to US dominance in the global economy.

At a recent BRICS summit in Rio de Janeiro, the 11-nation bloc, which includes South Africa Brazil, Russia, India, and China, criticised Trump's imposed tariffs.

In response, Trump accused the group of “anti-Americanism” and pledged the additional tariff.

Ramaphosa condemned Trump's threat of an additional tariff, saying efforts to “punish” the bloc were disappointing. "BRICS does not seek to compete with any other power," Ramaphosa said.