Tariffs strong-arm concessions

President Donald Trump repeatedly claims that his exorbitant tariffs of 10% to 50% and even higher on other countries will resolve what he calls a trade disadvantage for the U.S. The fine print in many of these agreements, however, reveals something far more sinister.

Since announcing the proposed tariffs in April, Trump has used tariff negotiations to badger countries to agree to his foreign policy objectives. He pressures them to purchase more U.S. manufactured weapons, fracked gas and oil and to support efforts to isolate China.

Claiming these countries pursue anti-American policies, Trump uses tariff threats to weaken and drive a wedge in the geopolitical and economic alliance of Global South economies known as BRICS.

BRICS, founded in 2006, initially included Brazil, Russia, India and China. South Africa joined in 2010. Six new members — Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates — were admitted in 2024-25. Malaysia, Nigeria and Thailand are among nine “partner” countries. Other countries have requested to join.

Focused on enhancing cooperation in trade, investment, development and global governance reform, BRICS countries include over 40% of the world’s population and produce 25% of global gross domestic product (GDP) and the grouping is positioned to be a counterweight to imperialist formations such as the G7. 

Trump’s tariff threats on BRICS nations include 50% against Brazil and 30% against South Africa. He has threatened up to 50% tariffs on goods from India unless the Modi government agrees to stop importing Russian oil. Trump already revoked Russia’s Most Favored Nation status, and many goods from Russia are subject to 20% tariffs. However, as part of his “negotiations” with Russia over the war in Ukraine, Trump has threatened more sanctions and higher tariffs.

At one point, Trump’s tariffs against China reached 145% but were reduced to 30% after a 90-day pause in May.

But rather than fracturing the BRICS alliance, Trump’s manipulative tariff threats may have the opposite effect — drawing its member countries into a closer, more coherent and coordinated force against U.S. trade pressure.

In Brazil, Lula fights back

An official White House statement in early August accused the Brazilian government of serious human rights violations for its prosecution of former Brazilian President Jair Bolsonaro and thousands of his supporters. Bolsonaro is currently under house arrest for attempting a coup d’état in 2023 following his defeat in the 2022 election.

Brazil’s President Luis Ignacio “Lula” da Silva has refused to hold trade talks with Trump and proposed instead that BRICS countries issue a joint response. Lula said on Aug. 6: “I’m going to try to discuss with them about how each one is doing in this situation … so we can make a decision. It’s important to remember that the BRICS have ten countries at the G20,” referring to the group that gathers 20 of the world’s biggest economies. (Reuters, Aug. 6)

Although there have been no official statements from other BRICS members in support of Lula’s proposal, News18.com reported calls Aug. 7 between Lula and Indian Prime Minister Narendra Modi regarding unilateral tariffs and the global economic situation. South African President Cyril Ramaphosa also spoke with Russian President Vladimir Putin regarding issues of mutual interest. On Aug. 8, Modi called Putin to reaffirm India’s commitment to deepen India-Russia ties, and Putin spoke separately with China’s President Xi Jinping.  

Xi, Putin and Modi will meet later in August at the Shanghai Cooperation Organization summit in Tianjin, China, which could provide for further talks on Trump’s tariffs. This will be Modi’s first visit to China in over seven years.

On Aug. 13, Lula launched the Sovereign Brazil plan to provide U.S. $5.6 billion in a package of measures to support Brazilian small exporters and workers hit by Trump’s 50% tariffs. The plan aims to reduce dependence on the U.S. and seek trade partnerships with China, Vietnam and India.

Tariffs push U.S. military goods, isolating China

In April, Trump initially threatened 25% tariffs on all South Korean exports to the United States. By July, the tariffs were lowered to 15% after Trump strong-armed South Korea to pledge to invest $150 billion into the U.S. shipbuilding industry, put up $200 billion worth of loans and other financing Trump claims he will personally direct and to buy $100 billion in U.S. liquid natural gas. This $450 billion commitment is nearly a quarter of South Korea’s entire $1.87 trillion 2024 GDP.

According to the Aug. 9 Washington Post, the Trump administration has expanded the use of tariffs to reach other “national security” goals, including widening U.S. military pressure against China. One draft of the U.S.-Korea tariff agreement included a requirement that “Korea will issue a political statement supporting flexibility for U.S. Forces Korea to better deter China while continuing to deter North Korea.”

The negotiating document reported on by the Post also revealed Trump administration plans to push Taiwan, India and Indonesia to increase their defense spending by buying more U.S. military hardware — again part of the “contain China” strategy. Trump’s threat of a 49% tariff on Cambodian goods was a bargaining chip to pressure Phnom Penh officials to let the U.S. Navy conduct annual ship visits and training exercises at Ream Naval Base.

African nations threatened

Trump’s insertion of China containment policies within tariff negotiations was not limited to Asia. According to the documents exposed by the Post, the administration used the threat of high tariffs on Madagascar to force the country to refuse to permit “China to establish military bases and expand military cooperation.” The tiny East African island nation of Mauritius was first threatened with a 40% tariff, reduced to 15% if it agreed to remove telecom equipment made by China’s Huawei, ZTE and Hikvision from its surveillance networks.

The administration used the threat of a 50% tariff to pressure Lesotho, a poor African nation, to accept deals with “multiple U.S. firms.” According to the Post report, Lesotho was to grant the renewable energy start-up OnePower “a five-year withholding tax exemption and a license to develop a 24-megawatt project.” Legal requirements for a physical address in Lesotho for Elon Musk’s Starlink to conduct business there were to be waived.

Writing in the People’s Dispatch (Aug. 12) Fudan University professor, Shen Yi, notes: “These cases illustrate a consistent U.S. strategy in recent foreign economic and trade negotiations: repeatedly wielding the tariff stick, applying unilateral and extreme pressure, conducting closed-door, one-on-one talks to isolate and wear down trade partners, forcing them to concede one by one.”

This is why Lula’s call for unity in the face of Trump’s attacks is an important first step.