BRICS Indirectly Hits Out at Trump’s Tariffs, WTO Paralysis
Jakarta. BRICS members have hit out at unilateral tariffs in an indirect jab at US President Donald Trump, while calling for a revamp of the world’s trade court, which Washington has also blocked.
New Delhi is hosting the group’s leaders — including President Prabowo Subianto — amid a tariff-hit and war-marred world over the weekend. The China-backed group adopted the so-called “New Delhi Declaration” on Saturday.
This 45-page document includes sections on the now-paralyzed World Trade Organization (WTO) and tariffs.
The BRICS members framed the current multilateral trading system as having long been at a crossroads. They fear the tariffs and non-tariff measures can worsen existing economic disparities and disrupt supply chains.
“We voice serious concerns about the rise of unilateral tariff and non-tariff measures, which distort trade and are inconsistent with WTO rules,” the New Delhi Declaration reads, while avoiding naming Washington.
The Trump 2.0 administration has slapped double-digit tariffs on individual BRICS members, including Indonesia. Trump had even pushed the rates to triple digits for China at some point. Last year, he threatened an extra 10% tariff on countries that align with the bloc's “non-American” policies. BRICS' attempts to shift away from the dollar had drawn Trump's ire.
BRICS’ newcomer Indonesia is currently subject to a 10% tariff when exporting to Washington after claims that Jakarta had failed to stop imports linked with forced labor. Chair India faces a 10% rate for the same reason.
Russia was exempt from Trump’s tariff campaign. The White House had said that the Western sanctions were already enough to preclude any meaningful trade.
WTO Paralysis
BRICS “strongly advocates for the immediate restoration of an accessible, effective, fully functioning, two-tier binding WTO dispute settlement mechanism”, according to the declaration.
The leaders believe that such revival would create “trust and predictability" among all WTO members.
The WTO’s appellate body has long been in abeyance, as Washington refused to appoint new judges over judicial overreach concerns. The body — whose main task is to hear appeals — is supposed to have seven judges running on four-year terms. But filling the vacancies require a consensus among the WTO members, including the US.
“[We strongly advocate] … the appointment of new appellate body members without further delay,” the declaration reads.
The gathering mainly took place behind closed doors. Prabowo told the conference that “international financial institutions must also evolve."
"Trade and currency must not be weaponized”, Prabowo said, without naming a specific country.
Russian leader Vladimir Putin and Chinese President Xi Jinping were in the room.
BRICS make up 40% of the world’s economy and over 25% of global trade. Brazil, Russia, India, China, and South Africa were the early members. The club expanded with Egypt, Ethiopia, Iran, and the United Arab Emirates in 2024. Jakarta secured its seat the following year.
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