India US Trade Deal: Is Donald Trump Worried About India's Growing Stature ? Says Will Impose 10% Additional Tariff On BRICS Nations

Former US President Donald Trump said that the US and India are "close to making a deal." This came after talks between the two countries to double trade to $500 billion by 2030.  But at the same week's cabinet meeting, Trump repeated a threat that was about to happen: all BRICS members, including India, will have to pay an extra 10% in tariffs "pretty soon" because of what he calls efforts to weaken the US dollar.

#WATCH | On India, in respect of tariffs, US President Donald Trump says, "...They will certainly have to pay 10% if they are in BRICS because BRICS was set up to hurt us, to degenerate our dollar...The Dollar is king. We are going to keep it that way. If people want to challenge… pic.twitter.com/VgVF2olMPL

— ANI (@ANI) July 8, 2025

Status of the Trade Deal

Trump confirmed that talks with India are going well and that India will not be affected by the tariffs that are linked to the US's plan for a 90-day extension for 14 other countries.

India's final plan covers trade in goods between the two countries worth $150 billion to $200 billion. The US is now reviewing it.

Tariffs are a threat to BRICS

Trump said that the BRICS group was trying to "degenerate" and "destroy" the US dollar and that they would pay a "big price" with an extra 10% tax.

This rule would apply to all present members, like India, China, Brazil, Russia, South Africa, and even new members like Iran and Indonesia.

Background in Geopolitics

This is in reaction to the BRICS summit in Rio, where leaders spoke out against unilateral trade restrictions and talked about how to strengthen financial ties and the shared goal of lessening reliance on the dollar.

Trump gave a strong warning: if the dollar lost its position as a global reserve currency, it would be "like losing a war, a major world war."

What's Next in the Timeline?

Trump didn't give a specific date other than "pretty soon," but the August 1 deadline for tariffs on different countries may have something to do with it.

Officials from India and the US are now trying to finish the "mini-deal" and settle any remaining issues in the next few weeks.

What does this mean for India?

The Best Chance:  India could lower its trade imbalance and gain access to US markets for energy, defence, pharmaceuticals, and agriculture by finalizing a trade deal with the world's largest economy.

• Tariff Risk: As a BRICS member, India is walking a fine line. It is seeking good terms with the US, but it could soon face tariffs in response.  To dodge punishments, timing is very important.
• Global Goals at Stake: India's rising impact around the world, from manufacturing to finance, is in line with the rise of BRICS.  But competing goals with protectionism in the US make this rise more difficult.

Outlook and What It Means

This week's events show how hard it is for India to balance its BRICS obligations with its efforts to make a good trade deal.  Trump's position shows a more protectionist US attitude and a focus on protecting the dollar's dominance against new economic blocs.

What to do next:

• Finish the deal:  Follow up with India on internal US reviews and discussions.

• Keep an eye on tariff actions: Pay attention to when BRICS-targeted tariffs are put in place.

• Coordination of diplomacy: India will need to be very diplomatic to reassure the US and keep the BRICS group together.