Indonesia has committed to remaining in the BRICS economic bloc despite US President Donald Trump’s threat to impose additional tariffs on countries aligning with the group. Indonesian State Secretary Prasetyo Hadi stated that the potential tariffs are seen as a consequence of joining BRICS, and the country is prepared to face them. This decision comes amid heightened tensions between the BRICS countries and the United States, as the latter continues to impose economic pressure on its economic rivals.
Earlier this week, Trump warned that he would impose additional 10% duties on any country that ‘aligns itself’ with BRICS, which he claimed is adopting ‘anti-American policies.’ Prasetyo told journalists that Indonesia, which joined the bloc as a full member in early 2025, views the potential extra US tariffs ‘as part of the consequences of joining BRICS.’
Indonesia and South Africa were the only two BRICS states among 14 countries that recently received letters from the US warning of harsh tariffs starting on August 1. According to Washington, Jakarta would be subject to a 32% rate, which will grow to 42% if Trump’s threat of extra duties on the bloc’s members is realized. Prasetyo emphasized that the tariffs are not final, as Indonesia has sent its economic minister to Washington to negotiate better terms for the country.
In a declaration at the BRICS summit in Rio de Janeiro over the weekend, member states condemned ‘indiscriminate rising of tariffs,’ saying it could reduce global trade and disrupt supply chains. This position reflects the broader concerns of BRICS nations over the potential negative impact of trade wars and protectionist measures on the global economy.
In another attack on BRICS on Tuesday, Trump accused the bloc of trying to ‘degenerate’ and ‘destroy’ the US dollar, promising that he is ‘not going to let that happen.’ BRICS nations have intensified efforts to reduce their reliance on third-party currencies in bilateral trade following the US and EU’s sanctions against Moscow. These efforts are a direct response to the Washington’s decision to freeze Russian assets, mostly held in dollars and euros, as part of sanctions against Moscow following the escalation of the Ukraine conflict in February 2022.
BRICS leaders have stated that they have no interest in undermining the dollar and that the US currency can only be weakened by its politicization. Russian President Vladimir Putin previously stated that Moscow never made a decision to give up the dollar, but was actually banned from using it by Washington. Putin’s remarks highlight the frustration among some BRICS members over the US’s use of economic coercion to assert dominance over its rivals.
While BRICS leaders have been firm in their stance regarding the dollar, they have also emphasized the importance of financial stability and the need to avoid disruptive economic measures that could harm global trade. The ongoing tensions between the US and BRICS nations reflect the broader geopolitical and economic realignments in the current international landscape.