Trump alludes to BRICS penalties as he threatens India with additional measures

WASHINGTON

US President Donald Trump suggested Wednesday that the range of additional penalties he has threatened to impose on India amid their simmering trade war could include measures against the BRICS bloc of nations.

"We're negotiating right now, and it's also BRICS. You know, they have BRICS, which is basically a group of countries that are anti the United States, and India is a member of that. If you can believe it," Trump told reporters at the White House.

"It's an attack on the dollar, and we're not going to let anybody attack the dollar. So, it's partially BRICS, and it's partially the trade. This trade situation -- it's the deficit. We had a tremendous deficit," he added.

BRICS consists of 11 nations, including Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.

Trump maintained that he remains friendly with Indian Prime Minister Narendra Modi, but said New Delhi does not "do very much business in terms of business with us. They sell a lot to us, but we don't buy from them. You know why? Because the tariff is so high, they have one of the highest tariffs in the world."

India vowed Wednesday to take “all steps necessary” to secure its “national interest,” hours after Trump announced the South Asian nation would face a 25% tariff, plus additional unspecified penalties, starting Aug. 1.

New Delhi said it “is studying implications” of Trump’s announcement, according to a statement by the Commerce and Industry Ministry.

Stating that India and the US have been engaged in negotiations “on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months,” the ministry said: “We remain committed to that objective.”

Trump did not initially specify what types of additional penalties he would be imposing on India beyond the 25% tariff, as he criticized India's trade barriers and Russia connections.

"India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World,” he wrote on social media.

US-India trade is substantial, with goods reaching about $129 billion in 2024, and Washington running a $45.7 billion trade deficit, according to the Office of the United States Trade Representative.

In New Delhi, the main opposition Congress party urged Modi to “stand up to” the US president on tariffs.

Asked about trade negotiations with China, Trump said talks are "moving along" as he struck an upbeat note on the progress.

"We're doing fine with China. I think it's going to work out very well. I think we're going to have a very fair deal with China," he said.