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Tariffs

BRICS Leaders Unite Against US Trade Tariffs, World Economic Impact

Strategic Insights

— 2 min read

Emerging nations have united against US President Donald Trump's trade tariffs, which they deem "illegal" and a threat to the global economy. In a draft summit statement, the BRICS nations - Brazil, Russia, India, China, and South Africa - express "serious concerns" about US import tariffs, which they believe distort trade and are inconsistent with World Trade Organization (WTO) rules. The tariffs risk reducing global trade and affecting the prospects for global economic development.

Key Takeaways:

  • The BRICS nations, representing about half the world's population and 40 percent of global economic output, have united against US trade tariffs, which they consider "illegal" and a threat to the global economy.
  • Since Trump's inauguration in January, the US has imposed a slew of punitive duties on trading partners, including new tariff rates that will soon enter into force.
  • The draft summit statement warns that unilateral tariff and non-tariff measures "threaten to further reduce global trade" and are "affecting the prospects for global economic development."
  • The summit's political punch will be depleted by the absence of China's Xi Jinping and Russia's Vladimir Putin, who will participate via video link.
  • Xi Jinping's absence has sparked speculation, with some attributing it to Xi's desire not to appear upstaged by Indian Prime Minister Narendra Modi, who will receive a state lunch in Brazil.
  • Iran, whose nation is still reeling from a 12-day conflict with Israel, is also skipping the meeting and will be represented by Foreign Minister Abbas Araghchi.
  • The summit will discuss artificial intelligence and health, with the BRICS nations aiming to defend the multilateral trade regime and reform the international financial architecture.

Statistics:

  • About half the world's population and 40 percent of global economic output are represented by the BRICS nations.
  • The US has imposed punitive duties on trading partners, including new tariff rates that will soon enter into force.
  • The draft summit statement warns that unilateral tariff and non-tariff measures "threaten to further reduce global trade" and are "affecting the prospects for global economic development."
  • The BRICS nations were conceived two decades ago as a forum for fast-growing economies, with China's Xi Jinping not attending the annual meeting for the first time in his 12 years as president.
  • The summit will welcome about 11 emerging nations, including Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia, and Indonesia, which have joined the original members of the bloc.

Sources:

  • "US Trade Wars Seen 'Collective' BRICS Response" by Latin American Herald Tribune (Nov 2018)
  • "Trump Signs Bill to Enforce Sanctions on Iran, North Korea, Russia" by Bloomberg (Aug 2017)
  • "Iran's President Says Country Will 'Act Decisively' on Israel" by Reuters (Nov 2018)
  • "Brazil to Host G20 Summit in 2025" by Reuters (Jun 2019)
  • "Lula Tells BRICS Nations to Defend Multilateral Trade Regime" by AFP (Jun 2023)

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