How Trump's tariffs have strengthed relations between BRICs members

The United States of America’s imposed tariffs on BRICS countries has enabled the contemporary economic alliance of emerging economies to establish stronger geopolitical and economic relations rather than improving Trump’s economy. As of 6th October, 2025, President Donald J. Trump has introduced multitudes of tariffs on BRICS countries, most notably China and India, alongside introducing novel tariffs on Brazil. The consequences, due to tariffs, have recently started to induce changes within BRICS countries, domestically and on external relations of said countries, completely altering the international geopolitical and economic scene.

On August 27, the White House issued an increase of 25% on Indian exports, resulting in a 50% baseline tariff for exports, as a result of India’s oil trade with Russia. India exports around $87B in textiles, gems, jewelry, leather, and chemicals to the United States yearly, placing all major Indian sectors at risk of collapse, with expected GDP growth decrease of 0.4-0.5%, naturally intending to shift the global market against Indian exports. Pharmaceuticals and semiconductors, alongside other products, have been exempted from such tariffs in favor of large American monopolies. This event will result in the favoring of other countries outside of BRICS for given exports, such as Vietnam and Bangladesh. Furthermore, the US is India’s 2nd strongest trading partner, sharing a $190B bilateral trade in 2024, though, representing a $47B trade deficit against the United States of America. Under Donald J. Trump, the US has publicly hinted its endeavours to increase the investment pool in the United States and promote the international purchase of goods by other countries produced domestically , continuing an everlasting policy of containment against BRICS nations, particularly China, Brazil, and India. These newly imposed tariffs have prompted Modi to seek diplomacy with the US, due to the immediate economic effect experienced in India, though a positive increase in the BSE and NSE was also present. As a result, Modi has urged the US to revert to a fair bilateral trade, interest subsidies alongside loan fees for MSMEs, enterprises which represent the tariffed aggregate, and most importantly, advocated diversifying India’s trade portfolio. The Trump administration’s lack of response, attempting to increase tension and assert American dominance in international trade, has enabled for new India-China talks to take place, though lagging significant additional Chinese focus, laying the foundation for amelioration in trade between these BRICS nations, tactically shifting global trade in favour of BRICS GDP growth.

The White House also imposed tariffs on Chinese exports, through altering the International Emergency Economic Powers Act (IEEPA), gradually increasing tariffs on imports from China by 125% from February 4th until 14th of May, which thereafter returned to its initial value of 10%. This attempt to decrease China’s overall trade surplus with the US of around $263B, in effect, enabled China to improve trade relations with EU and African countries, increasing China’s exports by 6% in value in June 2025, compared to 2024. On the other side, USA’s exports fell from the start of the year, prior to reducing tariffs on China, by 0.5%. USA’s large tech industry has also incurred losses throughout the period of February 4th until May 14th, for example, NVIDIA shares dropped from $139.40 to $135.50 and APPLE shares dropped from $244.00 to $211.10. Furthermore, on August 7, the United States announced a 40% increase on a 10% baseline reciprocal tariffs established on April 2, on Brazilian exports 06/10/2025 entering the US. Brazil experienced a mere 0.1% increase on exports from January 2025 to June 2025, compared to a 5.7% increase in exports during the same period but in 2024, prior to tariffs from the Trump administration. This overall exacerbation of US-Brazil trade relations has also been exhibited in GDP growth, decreasing from 3.5% in Q1 in 2024 to 1.4% in the same time period in 2025. However, these losses in exports to the US have also displayed a negative economical effect on the US, as Brazil contributed to the overall decrease in US trade during Q1 in 2025, alongside a 0.5% contraction in GDP growth in the US.

The tariffs imposed by Trump from the start of his presidency up until October 6, has led to a decrease in US international trade, GDP growth, and geopolitical ties between BRICS nations. Although Trump has attempted to stabilise the US economy and engrave the US as a major trading leader on a global scale, through increasing tariffs on countries with trade surplus opposing the US and containing the emerging economies of BRICS nations, in particular China, India, and Brazil, BRICS nations have been able to economically flourish. As previously mentioned, China experienced a year on year growth compared to 2024, with a significant increase in international trade. India established stronger relations with BRICS, particularly China, though also experiencing a GDP growth decrease. Brazil also experienced a GDP growth decrease compared to the same period last year, though the losses incurred by the US are marginally more significant. Therefore, although BRICS nations have experienced a decrease in economic productivity, the lasting effects of the tariffs have strengthened relations between BRICS countries and improved China’s economy, whilst also reducing US GDP growth, which is more significant than Trump’s endeavour of containment and international trade stabilisation.