Brics leaders denounce protectionism, tariff ‘blackmail’

BRASILIA - Leaders of the 11-member Brics bloc railed against economic protectionism and “tariff blackmail” during a virtual meeting on Sept 8 held amid a damaging trade war with US President Donald Trump.

The group of emerging economies met via videoconference at the initiative of Brazil’s President Luiz Inacio Lula da Silva, whose office said it was necessary to address the “intensification of unilateral measures”.

The Brics represents nearly 40 per cent of global GDP and almost half of the world’s population.

Its members are among those hardest hit by what Lula referred to on Sept 8 as “tariff blackmail” and “unjustified and illegal” trade practices.

Chinese President Xi Jinping, for his part, called for the upholding of “the multilateral trading system with the World Trade Organisation at its core” and for rejection of “all forms of protectionism.”

Tensions between the United States and China, the world’s two biggest economies, resulted in tit-for-tat duties that reached triple digits earlier this year before being lowered again.

In Brazil’s case, Mr Trump slapped his highest level of trade tariff – 50 per cent – on a range of goods from Latin America’s biggest economy.

Mr Trump is punishing Brazil for what he calls a “witch hunt” against his right-wing ally, former president Jair Bolsonaro who is on trial for allegedly plotting a coup to take power back from Mr Lula after losing 2022 elections.

A verdict in the trial is expected this week.

“Tariff blackmail is being normalized as an instrument to conquer markets and interfere in domestic affairs,” Mr Lula said on Sept 8.

‘Great hardships’

Washington also imposed tariffs of up to 50 per cent on Indian imports, accusing New Delhi of fueling Moscow’s deadly attacks on Ukraine by purchasing Russian oil.

Indian Foreign Minister Subrahmanyam Jaishankar told the Brics summit the world needed sustainable trade, adding that “increasing barriers and complicating transactions will not help.”

Russian President Vladimir Putin also took part in the virtual meeting days after

gathering with Mr Xi, North Korea’s Kim Jong Un and India’s Narendra Modi

in China, where regional leaders slammed America’s “bullying behavior.”

Mr Trump hit South Africa, engaged in a spat with Washington over a range of domestic and international policies, with a 30 per cent tariff – the highest in sub-Saharan Africa.

Mr Trump, who has repeatedly cited debunked claims of a “genocide” of white South Africans, will not attend the G-20 summit in Johannesburg later in 2025.

South African President Cyril Ramaphosa, in a prepared speech, told Brics counterparts that “unilateral tariff actions are contributing to an increasingly protectionist environment which poses great hardships and danger for the countries of the Global South.”

In July, Mr Trump

lashed out at the Brics

and threatened its members with additional tariffs after they voiced concern that his trade war was putting the global economy at risk.

“We must remain steadfast in promoting the building of an open global economy, sharing opportunities and achieving win-win results through openness,” Mr Xi underscored on Sept 8.

Other Brics members are Indonesia, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. AFP