Rupee Dips After Fresh Tariff Threat By Donald Trump On BRICS Nations

 Rupee weakened on Monday, opening 18 paise lower at 85.57 against the US dollar, following the fresh warning of additional 10 per cent tariffs on BRICS Nation from US President Donald Trump.

In a post on Truth Social, Trump said that the he would impose more on any country supporting what he called “anti-American policies of BRICS.”  “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!” Trump posted on Truth Social.

The announcement triggered Asian currency markets, with most regional currencies trading in the red.

The BRICS bloc — comprising Brazil, Russia, India, China, and South Africa — reportedly agreed over the weekend to intensify discussions on developing a cross-border payments infrastructure that could potentially reduce dependency on the US dollar. Trump had previously threatened steep 100% tariffs if BRICS countries would not trade in dollar in bilateral trade.

Trump Extends Tariff Date

Trump administration once again shifted the tariff kickoff date to August 1 as some deals are in progession and could take time to finalise. “President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” US Treasury Secretary Scott Bessent stated CNN as per Reuters.  

Mini Trade Deal With India

In the midst of these developments, India and the United States are expected to conclude discussions on a pending “mini trade deal” within the next 24 to 48 hours, according to media reports.

On the ground, exporters are watching for a potential move toward the 86 mark to trigger hedging strategies, while importers are hoping for a reversal toward 85.

Despite Monday’s dip, the rupee has still managed to gain 0.17% so far in July, after posting a 0.18% loss in the first half of the year.

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