In a move that could further strain international relations, President Donald Trump has announced a 10% tariff on countries aligning with the BRICS alliance, effective August 1. This decision comes as part of Trump's broader strategy to protect American interests and challenge what he perceives as anti-American policies. The BRICS group, comprising Brazil, Russia, India, China, and South Africa, recently expanded to include nations like Egypt and Saudi Arabia, representing over half of the world's population.

BRICS Criticism and Global Economic Concerns

The BRICS nations have openly criticized the US tariff policies, arguing that they pose a significant threat to the global economy. During a two-day meeting in Rio de Janeiro, BRICS leaders called for reforms to international institutions and emphasized the need for diplomatic solutions amid rising trade conflicts. A joint statement from the group's finance ministers highlighted the uncertainty these tariffs introduce to global trade activities.

EU and Japan Seek Trade Solutions

As the deadline for new tariffs approaches, the European Union is engaged in critical negotiations with the US to avert a potential trade war. With only two days left, EU leaders are racing to secure a deal that would prevent Trump's threatened 50% tariffs on European imports. Meanwhile, Japan is being advised to diversify its trade partnerships beyond the US, with opposition leaders warning that reliance on American trade could destabilize the Japanese economy.

Market Reactions and Political Tensions

The announcement of new tariffs has sent ripples through global markets. Tesla shares experienced a decline following a public spat between Elon Musk and Trump, as Musk announced plans to launch a new political party. Analysts warn that Musk's political ambitions could impact Tesla's market performance, especially if tensions with Trump escalate.