Jakarta. US President Donald Trump has threatened to slap an extra 10 percent tariff on countries that aligned themselves with BRICS ahead of Washington’s signing of a $34 billion deal with Indonesia.

President Prabowo Subianto and other BRICS leaders are currently in Rio de Janeiro for their two-day talks. The meeting resulted in a Rio de Janeiro declaration that indirectly slammed the US reciprocal tariff policy, even calling such measures inconsistent with the rules set by the World Trade Organization (WTO). This document, which did not give a direct mention of the US, appears to have ruffled Trump’s feathers as he lashed out at BRICS on social media.

“Any country aligning themselves with the anti-American policies of BRICS will be charged an additional 10 percent tariff. There will be no exceptions to this policy,” Trump wrote in a Truth Social post on Sunday.

Trump did not expand on what he meant by “anti-American policies”, although the comment came shortly after the Rio de Janeiro declaration came out. BRICS members include Brazil, Russia, India, China, and South Africa. The bloc has also expanded with Egypt, the United Arab Emirates, Iran, Ethiopia, and Indonesia. Trump has been critical of BRICS, even threatening to slap a 100 percent tariff on goods coming from the group’s members should they set up a rival currency to the dollar.

Just like the rest of the world, BRICS nations are about to face an additional tariff hike on their US-bound goods as part of Trump’s infamous “reciprocal tariff” policy. These extra duties have already started at 10 percent for Washington’s trading partners, but Trump has threatened to increase the tariff hikes on some countries. Indonesia is set to face an additional 32 percent reciprocal tariffs -- one of the highest in the BRICS grouping.

Trump’s latest threats also came just ahead of a memorandum of understanding (MoU) signing between Indonesia and the American business partners on July 7 or Monday. Chief negotiator and senior minister Airlangga Hartarto said that the $34 billion MoU would include Indonesia’s commitment to buy more American fuels and agricultural products, as well as investment plans involving the sovereign fund Danantara. The MoU is part of Jakarta’s efforts to strike a tariff relief deal with the US. The proposed fuel purchase alone is worth approximately $15.5 billion.

Senior economist Bhima Yudhistira recently told the Jakarta Globe that Indonesia should be careful with its US fuel import plans. He said: “Indonesia needs to make sure that any fuels imported from the US, including liquefied petroleum gas [LPG], are cheaper than our existing suppliers.”

Trump has given trading partners a negotiating window until July 9, but there are plans to have the higher tariffs take effect on August 1.

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