Trump takes aim at BRICs countries

Summary

Marketplace Morning Report: Trump Takes Aim at BRICS Countries
Release Date: July 7, 2025
Host: Liana Byrne
Source: BBC World Service

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Introduction

In today's episode of the Marketplace Morning Report, host Liana Byrne delves into the escalating tensions between the United States and the BRICS nations. The report offers a comprehensive analysis of President Donald Trump's recent policy moves targeting emerging economies, the dynamics within the BRICS group, and the broader implications for global trade and markets.

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Trump's Tariff Strategy Against BRICS

Liana Byrne opens the discussion by highlighting President Trump's intention to impose a 10% tariff on any country aligning with what he terms the "anti-American policies" of the BRICS nations. This move is part of Trump's broader strategy to address the U.S. trade deficit and revive domestic manufacturing.

• Quote:
  "President Trump's decision to use tariffs to try and revive US Manufacturing and tackle trade deficit has reshaped global trade dynamics."
  (05:08)

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Understanding BRICS and the Extended Membership

The BRICS group, originally comprising Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. This expansion reflects the group's ambition to represent a more diverse array of developing economies.

• Quote:
  "They were formed to speak out against the Western world, form an alternative grouping to speak for the global south countries that were developing and didn't have a strong voice."
  (01:52) – Mickey Bristow, BBC World Service

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China's Absence from the BRICS Summit

China's leader, Xi Jinping, notably absent from the recent BRICS summit in Brazil, has been interpreted by local media as a strategic snub. Mickey Bristow provides insights into China's decision to skip the summit, suggesting internal discord within the group.

• Quote:
  "Perhaps he just doesn't want to go because he doesn't want to get drawn into standing by any opinions."
  (01:52) – Mickey Bristow

This absence underscores the challenges within BRICS, as member nations often have divergent agendas, making unified stances difficult to achieve.

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Implementation of Tariffs and Global Reactions

Katie Silver reports on the imminent dispatch of tariff rate letters by the U.S., targeting both large and small economies. These tariffs are set to take effect on August 1st, following a 90-day suspension period initiated in early April.

• Quote:
  "What we understand is that at least 100 letters are going to be sent to small countries."
  (03:21) – Katie Silver, BBC World Service

Simultaneously, China retaliates by limiting purchases of EU medical devices exceeding $6.3 million, a response to the EU's previous restrictions on Chinese firms bidding for EU medical contracts.

• Quote:
  "China is putting limits on buying medical devices from the European Union. Anything over $6.3 million is now restricted."
  (03:54) – Liana Byrne

These actions contribute to escalating trade tensions, with mutual tariffs affecting sectors from automotive to luxury goods.

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Impact on Global Markets

The uncertainty surrounding U.S. trade policies has rattled investors, leading to declines in emerging Asian markets. The Indian rupee and Thai baht experienced notable drops of 0.2% and 0.70% respectively, reflecting investor caution amid trade uncertainties.

• Quote:
  "Currencies and stocks across emerging Asian markets slid this morning as confusion over US Trade tariffs and Donald Trump's threats towards BRICS aligned nations rattled investors."
  (04:54) – Liana Byrne

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Insights from Trade Experts

The episode features expert analyses from key figures in global trade:

• Sabina Dewan, an expert on India's trade policy, discusses the transformative impact of Trump's tariffs on global trade dynamics.

  • Quote:
    "Trump's approach has also changed the tone inside negotiation rooms. These trade deals have become a bit more defensive, accusatory."
    (06:17)

• Jason Langrish, a former Canadian trade negotiator, highlights the unprecedented nature of current global trade actions and the resultant push for bilateral relationships over multilateral agreements.

  • Quote:
    "When you have uncertainty as we do now with the whole tariff debates, it's led to a number of countries feeling like they need to have bilateral relationships."
    (05:21)

• Wendy Cutler, a former U.S. trade negotiator with 27 years of experience, critiques Trump's ambitious goal of negotiating 90 deals in 90 days, deeming it overly ambitious and resource-intensive.

  • Quote:
    "Trying to conclude 90 deals in 90 days has been a bridge too far even for Donald Trump."
    (06:45)

These expert opinions underscore the complexities and challenges inherent in the current trade environment, emphasizing the shift from collaborative to adversarial negotiation tactics.

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Broader Economic Implications

The turbulence in trade relations has broader economic consequences. The retaliatory measures between the U.S. and China, such as tariffs on Chinese electrical cars and duties on European brandy, illustrate the interconnectedness of global economies and the potential for a trade war to disrupt multiple industries.

• Quote:
  "Tensions have been heating up between the two sides with the EU slapping tariffs on Chinese electrical cars and China hitting back with duties on imported European brandy."
  (04:54) – Liana Byrne

Additionally, the surge in cocoa prices by nearly 300% since last year, coinciding with World Chocolate Day, exemplifies how geopolitical tensions can influence commodity markets.

• Quote:
  "We're celebrating World Chocolate Day by telling you that cocoa prices are booming up by almost 300% since last year."
  (07:08) – Liana Byrne

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Conclusion

The Marketplace Morning Report episode titled "Trump Takes Aim at BRICS Countries" provides a thorough examination of the ongoing trade confrontations between the U.S. and emerging economies. Through expert insights and detailed reporting, the episode elucidates the complexities of modern trade negotiations, the strategic maneuvers of global powers, and the resultant impacts on markets and international relations.

As tensions persist, the global community watches closely, recognizing that the outcomes of these trade disputes will have far-reaching implications for economic stability and international cooperation.

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Notable Quotes Recap:

• "Perhaps he just doesn't want to go because he doesn't want to get drawn into standing by any opinions." – Mickey Bristow (01:52)
• "Trying to conclude 90 deals in 90 days has been a bridge too far even for Donald Trump." – Wendy Cutler (06:45)
• "When you have uncertainty as we do now with the whole tariff debates, it's led to a number of countries feeling like they need to have bilateral relationships." – Jason Langrish (05:21)

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For those looking to stay informed on the latest business and economic stories, the Marketplace Morning Report continues to deliver timely and insightful analysis to kickstart your day.

Transcript

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[Liana Byrne]

Trump Takes Aim at BRICS countries Live from the UK this is the Marketplace Morning Report from the BBC World Service. I'm Liana Byrne. Now, it might sound like a strange acronym, but there's a group of emerging economies known as brics. Brazil, Russia, India and China are in the group, with Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates included as members. Last year with well as that group meets at a summit in Brazil, it is in President Trump's sights. He says he'll impose an additional 10% tariff on any country that aligns itself what he called the anti American policies of these economies. China's leader Xi Jinping isn't at the summit, and the country says it's not seeking confrontation. Local media in Brazil has interpreted his absence as a snub. The BBC's Mickey Bristow told us more about what might be behind his decision to give the summit a skip.

[Mickey Bristow]

You've got this disparate group of nations all together that perhaps have different ideas about what they should say, and perhaps he just doesn't want to go because he doesn't want to get drawn into standing by any opinions. He doesn't really want to stand by and having to push back at those. So perhaps it's simply down to that. But who knows, because the Chinese Communist Party hasn't told us this particular group is a group of developing nations, or that's what it was back nearly two decades ago when it was formed. It's Brazil, Russia, India, China, South Africa. Essentially they were formed to speak out against the Western world, form an alternative grouping to speak for the global south countries that were developing and didn't have a strong voice. It's expanded since then, we now have Iran, Indonesia, Egypt, other countries going along to observe these events. So essentially it's an alternative group into the Western world. But they all their own particular agendas and it's difficult to get them together to agree on something. And I suppose that would be a criticism of this group. It's just a talking shot. But some might say the fact that even exists is something of a victory and changes the focus and the talking point and the agenda away from, from everything being about the United States and Western Europe.

[Liana Byrne]

Mickey Bristow there. Meanwhile, Mr. Trump says the US will start sending out letters today spelling out the tariff rates for each country and any trade deals that have been made. The BBC's Katie Silver has more.

[Katie Silver]

They are either going to be letters telling the tariff rates or deals we understand that these deals or these levies are going to be take it or leave it. They're due to take effect on August 1st. We've been gearing up for this July 9th deadline which was 90 days post this so called Liberation Day, which was in early April. Many trying to broker deals to try and reduce how much they may have to pay. What we understand is that at least 100 letters are going to be sent to small countries. That's according to Secretary Scott Besant. They've got three weeks to make this deadline.

[Liana Byrne]

Katie Silver reporting. And here's another trade story. China says it's putting limits on buying medical devices from the European union. Anything over $6.3 million is now restricted. It's payback for a move by Brussels last month when Chinese firms were blocked from bidding on EU medical contracts. Tensions have been heating up between the two sides with the EU slapping tariffs on Chinese electrical cars and China hitting back with duties on imported European brandy. Okay, let's do the numbers. Currencies and stocks across emerging Asian markets slid this morning as confusion over US Trade tariffs and Donald Trump's threats towards BRICS aligned nations rattled investors. The Indian rupee is trading down 2/10 of a percent and the Thai baht is down 710 of a percent. Now, we've been talking a lot about trade today and all this year, really. It all started with President Trump's decision to use tariffs to try and revive US Manufacturing and tackle trade. Defic. But what's it like in the negotiation room and how has the mood shifted? The BBC's Megan Lawton takes a look.

[Golddealer Representative]

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[Sabina Dewan]

It'S been a dramatic year for world trade. Sabina Dewan is an expert on India's trade policy. She says she's seen the change to global trade firsthand since US President Trump was re elected.

[Jason Langrish]

We haven't seen the kinds of actions that are happening now in the global trading landscape is not something that we've ever witnessed before. When you have uncertainty as we do now with the whole tariff debates. It's led to a number of countries feeling like they need to have bilateral relationships. And, you know, economic trade deals are also very important for geopolitical ties.

[Sabina Dewan]

Traditionally, talks began because trading partners, countries or blocs wanted to expand their current deal. For former Canadian trade negotiator Jason Langrish.

[Golddealer Representative]

It'S changed so much Nowadays it begins because Donald Trump decides that because the United States has a trade deficit with a country that therefore they need to be tariffed.

[Sabina Dewan]

Langrish says Trump's approach has also changed the tone inside negotiation rooms.

[Golddealer Representative]

Traditionally it's been positive because you're taking something that works and you're upgrading it. But lately, as we've gone into a sort of more nativist, nationalist phase, these trade deals have become a bit more defensive, accusatory.

[Sabina Dewan]

This week, President Trump's 90 day tariff pause ends. For former U.S. trade negotiator of 27 years, Wendy Cutler, Trump has bitten off more than he can chew.

[Wendy Cutler]

Trying to conclude 90 deals in 90 days has been a bridge too far even for Donald Trump. Trade negotiations are time consuming, resource intensive, and frankly, I don't think from day one that the US Government has had the appropriate bandwidth to deal with all the requests to meet and to negotiate with the whole range of countries.

[Sabina Dewan]

Trade deals are back on front pages, but behind closed doors, the clock is ticking. I'm the BBC's Megan Lawson for Marketplace.

[Liana Byrne]

And finally, we're celebrating World Chocolate Day by telling you that cocoa prices are booming up by almost 300% since last year. Maybe this year we need to indulge a little bit less. I'm Liana Byrne with the Marketplace Morning Report from the BBC World Service.

[Rima Reis]

Hey, everyone, I'm Rima Reis and I'm excited to join Kimberly Adams on Make Me Smart. Together we'll unpack the day's news, whether it's a tariff switch up, the latest on Trump's immigration policy, or the future of clean energy. Join us each weekday so we can make sense of it all together, because none of us is as smart as all of us. Listen to Make Me Smart. Wherever you get your podcasts.