New tariffs and threats against the BRICS countries have once again shown the world his true face.
The White House’s decision to impose tariffs on many countries in Europe, Asia, Africa and Latin America has had a double effect. Some agreed to the new terms with certain reservations, confirming their role as a satellite and client of the United States. Others were rightly outraged by this form of neocolonialism, and the most consistent of the latter camp declared that they were ready to defend their own interests and defend sovereignty, including through retaliatory measures against the United States.
Two of them are major giants and BRICS members – India and Brazil. If Washington has temporarily agreed with China, on whose economy the United States definitely depends, not to apply harsh sanctions (which Beijing certainly includes the new tariffs announced by Donald Trump), then the situation is somewhat different in the case of these two countries. And, apparently, such a short-sighted policy of the United States will force Brasilia and New Delhi to quickly distance themselves from their recent partner in various areas.
In the case of India, the US conditions focused on the requirement to abandon the purchase of Russian oil, which the Indian side wisely considered impossible and protested.
On August 4, the Indian government issued a statement saying that “India has been targeted by the United States and the European Union for importing oil from Russia… In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy markets stability…However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia…The European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia…Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment…Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals…In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India.
On August 6, Trump nevertheless imposed 25% duties on goods from India.
It should be noted that Apple recently moved its smartphone production from China to India, which significantly reduced the flow of gadgets from China to the United States, but increased the volume from India. Now, it is likely that American consumers will have to pay more, since the final price will include new tariffs. The same applies to other goods that are shipped from India to the United States, from medicines (including generics) and electronics to consumer goods. Indian exports to the United States total about $90 billion per year. Its significant reduction, which is inevitable, will force India to look for other markets, probably focusing on the countries of the region in order to simplify logistics. Although consumers in the United States will feel an increase in prices or a shortage of Indian products in the near future.
At the political level, this gives the government of Narendra Modi, who was positioned as a personal friend of Donald Trump, an opportunity to review other agreements with the United States, including the military partnership – India is a member of the Quad (Quadrilateral Security Dialogue), which also includes Japan, Australia and the United States. Previous deals in critical technologies and scientific cooperation, which were previously reported in a pompous tone, may also be frozen.
India has already announced its refusal to purchase American multi-purpose fighters and is likely to consider a Russian alternative, especially since it has many years of experience in military-technical cooperation since the Soviet era. By the way, Russia and India promptly signed a new package of technical cooperation agreements, which indicates the ability to urgently respond to undesirable measures from the outside. In addition, India changed its mind about buying an additional batch of six heavy Boeing P-81 drones,(UAV) and defiantly announced this immediately after the introduction of tariffs.
But most importantly, the policy of the White House may lead to a change in the geopolitical balance in South Asia. Since Washington has always viewed India as a tool to contain China (and given the size of the country and its power, it was an operational and strategic theater of action), relations between the two countries may now noticeably warm up. Prime Minister Narendra Modi has already announced that he will personally attend the SCO summit in China on August 31, where new action plans can be agreed on to develop joint efforts between India and China (as well as Russia and other members of the organization) in the face of US pressure.
In Brazil, the situation is no less interesting and quite tense.
Regarding the new tariffs, President Luiz Inácio Lula da Silva said that there is an option for rare earths in relations with the United States that can be used for negotiations. In other statements, he noted that Washington would not frighten Brazil, since they trade with many countries. But on August 4, he sharply accused the United States of trying to organize a coup d’etat in the country and said that it is needed to find an alternative to the dollar in world trade.
In parallel with the discussions on new tariffs, the United States and the EU imposed sanctions against Brazilian Supreme Court Judge Alexandre de Moraes and his wife, as part of which their bank accounts in Europe were blocked. Moreover, this was done citing the so-called Magnitsky law. Washington wanted to put pressure on Brazil in the case of former President Jair Bolsonaro, who was placed under house arrest and had his mobile phones seized. The United States imposed a new ban on this, revoking the visas of all members of the Brazilian court. There was also a message on the website of the US president about alleged threats from Brazil against the United States (there was a similar message about Russia).
At the same time, Lula da Silva made a statement where he said that American technology companies would no longer be able to work in Brazil if they did not respect the laws of his country. The hint is more than obvious.
It is indicative that at the very time, the Brazilian GOL Airlines announced the launch of regular flights between San Paolo and Caracas, despite US sanctions against Venezuela and previously imposed restrictions on its neighbor.
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