Trump's Brics warning to India adds new twist to trade deal

Delhi could face an additional 10% tariff, write Ruchi Bhatia, Sudhi Ranjan Sen and Shruti Srivastava

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US President Donald Trump's threat to impose new tariffs on India over its participation in the Brics forum puts New Delhi in a tough position as it races to finalise a favourable trade deal with the US.

Mr Trump said Tuesday that India could face an additional 10% tariff alongside other members of Brics — a bloc of emerging economies he has labelled “anti-American”. The remarks came just a day after the US leader said he was close to finalising a trade deal that New Delhi hopes would give it reprieve from 26% reciprocal tariffs.

The latest threat by the US president followed a two-day Brics summit in Brazil, in which leaders agreed on a joint statement that criticised trade distorting tariffs. But while Brazil and South Africa have blasted Mr Trump separately for his comments, India has refrained from responding publicly, a sign that it's treading a fine line in maintaining its relationship with Washington.

Officials in New Delhi say they're not overly alarmed by Mr Trump's latest threats for now. The US leader's view is that Brics is seeking to undermine the dominance of the US dollar, which is not India’s goal, the officials said, asking not to be identified because the discussions are private.