Trump Warns India of New Tariffs Over BRICS Ties Ahead of Trade Deal

Just as a long-awaited trade deal between India and the U.S. appeared close to completion, U.S. President Donald Trump issued a sharp warning to New Delhi over its continued engagement with the BRICS bloc, threatening additional tariffs.

Speaking on Tuesday, Trump said India could face a 10% tariff hike, grouping it with other BRICS nations, which he labeled as “anti-American.” The warning came just a day after he claimed to be nearing a final agreement with India that could shield it from a planned 26% retaliatory tariff.

Trump’s comments follow the recently concluded BRICS Summit in Brazil, where member nations, including Indian Prime Minister Narendra Modi, issued a joint declaration opposing “trade-distorting” tariffs. While Brazil and South Africa openly criticized U.S. trade policy during the event, India refrained from making any public statements.

India Responds with Caution

Indian officials, speaking anonymously to Bloomberg, played down the latest remarks from Trump, suggesting the U.S. president misunderstood India’s BRICS participation. They said India is not aligned with BRICS calls to undermine the U.S. dollar or push for a common currency.

“India’s participation in local currency trade is about risk mitigation, not de-dollarisation,” one official said, adding that India does not support a unified BRICS currency.

At a press briefing on Tuesday, senior diplomat P. Kumaran confirmed that Trump’s threats were not discussed during PM Modi’s recent state visit to Brazil. “We didn’t have an opportunity to discuss that,” he said.

Former Indian ambassador and WTO negotiator Mohan Kumar noted that Trump’s concerns stem from talk within BRICS of creating an alternate global reserve currency. However, he emphasized, “India has made clear distinctions between local currency trade and de-dollarisation.”

High Stakes for India-U.S. Trade Pact

Both Washington and New Delhi are eyeing a breakthrough in trade talks by fall 2025, a deal that could significantly reduce tensions after years of tariff skirmishes and mutual suspensions of trade privileges.

Opposition MP Shashi Tharoor, who has played a key role in India’s global diplomatic efforts post the 2019 Pakistan conflict, said the deal would symbolize deepening strategic trust between the two democracies.

Indian trade negotiators have reportedly submitted their final proposal, and are now waiting on the Trump administration’s response. Some analysts view Trump’s latest tariff threat as a bargaining tactic aimed at extracting last-minute concessions from New Delhi.

Trump has previously warned BRICS members that 100% tariffs could be imposed if the group proceeds with efforts to bypass the U.S. dollar in bilateral trade.

For now, India appears to be walking a tightrope—pushing forward on a critical trade agreement with the U.S. while carefully managing its role in an increasingly assertive BRICS.