Tariff Time Again: Trump Sends Trade Letters Ahead Of Deadline, Threatens 10% Tariff On BRICS-Aligned Nations

Trade tensions are once again front and center for investors as President Trump’s tariff deadline looms.

On Sunday night, the president announced that the U.S. will begin sending tariff letters to major trading partners, warning of levies on countries that have yet to strike a deal. The president expects letters to be sent to 12 countries. 

Trump wrote on Truth Social:

I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7. Thank you for your attention to this matter! DONALD J. TRUMP, President of The United States of America.

Treasury Secretary Scott Bessent said President Trump will begin sending letters to U.S. trading partners, warning that if no agreement is reached, tariff rates will revert to April 2nd levels—set to take effect on August 1.

Bessent noted that several major deals are nearing completion and that “big announcements” could be made this week. He added that around 100 smaller countries will be assigned a default tariff rate, many of which never engaged in negotiations with the Trump administration. 

Adding to the uncertainty, Trump said an additional 10% tariff will be imposed on any nation aligning with BRICS, the bloc of emerging market economies (Brazil, Russia, India, China, and South Africa) seen as increasingly hostile to U.S. interests. 

Trump wrote on Truth Social:

Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!

The 10-member bloc of emerging-market nations has increasingly positioned itself as a geopolitical and economic contender to the US-led global economic order, which is seen as fracturing as the world stumbles into a dangerous bipolar state. 

BRICS seeks to reduce the dominance of Western institutions like the IMF, World Bank, and the U.S. dollar system

Trump has previously threatened countries that back a new reserve currency…

“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” Trump wrote on X in late 2024. 

The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they…

— Donald J. Trump (@realDonaldTrump) November 30, 2024

Goldman analyst Nelson Armbrust commented on Trump’s tariff posts:

Trade tensions are back in view as the tariff deadline approaches, with Trump pledging to start issuing unilateral rates to dozens of countries in the coming days. Stocks retreated at the start of a potentially volatile week as U.S. trading partners rushed to finalize trade deals with the Trump administration ahead of a July 9 tariff deadline.

U.S. officials earlier signaled August 1 as the date for higher levies to kick in. Treasury Secretary Scott Bessent indicated some countries may be offered a three-week extension to negotiate.

On a side note, over the weekend BRICS leaders, including China and India, condemned U.S. and Israeli attacks on Iran and called for a “just and lasting” resolution to conflicts across the Middle East. President Donald Trump threatened to impose an additional 10% tariff on any country aligning with “the Anti-American policies of BRICS”. Metals fell, the yuan weakened and the dollar rose 0.4%

The inflection point appears to be the 2030s… 

The broader message is clear: the Trump administration is drawing a very hard line—it will not allow BRICS to dismantle the dollar-based global order. This is shaping up to be a fight for economic and geopolitical survival, as the White House moves to ensure the American experiment endures the challenges of a bipolar world in the 2030s.