Friday, July 11, 2025

India Sends Trade Team to U.S. Amid BRICS Tariff Turmoil and Uncertainty Over Deal

 India Sends Trade Team to U.S. Amid BRICS Tariff Turmoil and Uncertainty Over Deal




An Indian trade delegation is set to travel to the United States once again in the coming days, aiming to get clarity on a number of recent and rather surprising policy signals from Washington — particularly a proposed 10% tariff on imports from BRICS nations. The visit will also focus on pushing forward discussions on a “mini” trade deal and a broader bilateral investment treaty.

Sources familiar with the matter say the newly floated tariff — which appears to target all BRICS countries — has raised serious concerns in New Delhi. The confusion stems from U.S. President Donald Trump’s recent remarks, where he bluntly stated that “any country that’s in BRICS is getting a 10% charge pretty soon.” This statement, delivered first on Sunday and repeated during a Cabinet meeting on Tuesday, has left many Indian officials wondering what this means for ongoing trade talks.

What’s particularly alarming is that this threat comes on top of formal letters sent by Washington to several countries, including Brazil, South Africa, and Indonesia, notifying them of steep import tariffs effective from August 1. These include a 50% tariff on Brazilian goods, 30% on South African imports, and 32% on goods from Indonesia. A similar agreement with China, reached in late June, will see a 30% tariff imposed on Chinese exports to the U.S.

This has triggered a lot of head-scratching in India. “There’s no clarity yet on whether the new 10% BRICS tariff is in addition to what was outlined in those letters or if it overlaps,” a senior Indian official told. “We need to understand exactly how this impacts India and where it leaves the trade deal currently being negotiated.”

Adding to the uncertainty is a sweeping new 50% tariff on all copper imports into the U.S., which also raises concerns for Indian exporters.

Another official confirmed that India is actively engaged with the U.S. through virtual channels and will soon follow up in person. “The team will seek more clarity on these new tariff moves and continue talks on both the mini deal and the full bilateral trade agreement,” the official said.

This will mark the third Indian delegation to the U.S. in recent months for trade negotiations, while American officials have made two trips to India during the same period.

Trade analysts say the latest announcements are not just disruptive — they call into question the reliability of any deal made with the current U.S. administration. “The unpredictability under Trump makes even signed agreements feel shaky,” said Ajay Srivastava, former Director-General of Foreign Trade and founder of the Global Trade Research Initiative. “His recent warnings suggest that aligning too closely with BRICS positions could come at a steep cost — even if you have a deal in hand.”

In short, Indian negotiators have their work cut out for them — not just in ironing out the details of a trade pact, but in understanding what kind of economic relationship Washington is now offering.

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