The Telegraph: Donald Trump starts trade war

President Donald Trump has said that any country that joins the anti-American policy of the BRICS group of countries will be subject to additional 10 percent tariffs. However, the consequences for US trade policy and global influence could be very serious and not at all in the positive light that Trump sees, writes The Telegraph.

The publication notes that the new tariffs on the BRICS countries and their partners will not deal a serious blow to the economies of Russia and Iran. In addition, the escalation of trade tensions between the US and China is beneficial for Russia, as it can easily replace American supplies of oil, liquefied gas and coal to China. With trade volumes between Russia and China reaching $244.8 billion and between Russia and India reaching $70.6 billion, the Russian economy can rely on intra-BRICS trade to bridge supply chain gaps.

Higher prices for goods supplied by BRICS members and partners will only accelerate Russia’s domestic production goals. Vladimir Putin has called for reducing the share of imports in the country’s GDP to 17% by 2030, and increasing the price of imported products will give an advantage to domestic manufacturers of industrial goods.

"While Trump’s anger at the BRICS is partly due to Iran’s support for the bloc in its fight against US and Israeli strikes, the new tariffs will have little impact on Iran’s economy. It could also encourage Russia and China to engage more closely in economic cooperation with Tehran and give new impetus to India’s May 2024 agreement to manage Iran’s Chabahar port,” the report said.

The Telegraph stresses that the impulsive imposition of tariffs on BRICS members and partners would also nullify positive steps towards de-escalation of trade tensions between the US and China. As a result of the agreements in London and Geneva, Washington agreed to ease export restrictions on aircraft engines, semiconductor design software and ethane, and Beijing agreed to ease non-tariff barriers on the supply of rare earth metals.

The new tariffs could derail further negotiations and cause further disruptions in industrial supply chains, which have been partially resolved through protracted negotiations. In addition to destroying bilateral trade ties with key partners, the new tariffs are causing even greater damage to the US's international image.

“Instead of a show of force that would assert US hegemony in the confrontation with China, Trump's tariffs could become an unexpected gift to Beijing. The US trade war against the BRICS countries has a logical basis, given Washington's irritation with their anti-Western policies. But if you act on emotions and introduce tariffs without calculation, this could harm America more than help“, the publication concludes.