Trump Imposes 10% Tariff on BRICS Aligned Countries

Donald Trump has announced a 10% tariff on countries aligning with BRICS' anti-American policies, effective from Monday at 12pm ET. This move comes as the 90-day tariff pause expires, signaling a potential escalation in trade tensions. Trump's statement was clear: "Any country aligning themselves with the anti-American policies of BRICS, will be charged an additional 10% tariff. There will be no exceptions to this policy."

The targeted countries are those that have shown support for BRICS' anti-American positions. Notably, BRICS leaders, including China's Premier Li Qiang, discussed opposing U.S. military actions at their recent summit. This summit, the Fifth BRICS Summit, highlighted the growing alignment among BRICS nations against certain U.S. policies.

The threatened tariffs could have significant implications for global markets, particularly for nations with strong trade ties to the U.S. The potential for increased market volatility is a concern, as is the indirect impact on cryptocurrencies. If relations between the U.S. and BRICS nations deteriorate, there could be observable shifts in cryptocurrency markets, with dollar alternatives potentially becoming more relied upon.

This situation echoes Trump's tariff escalations from 2018 to 2019, which led to increased market volatility. During those periods, cryptocurrencies often benefited as alternative investments. The current climate suggests that similar outcomes could be observed, with potential impacts on USD-centric stablecoins and cross-border DeFi flows, signifying wider economic implications.