International RelationsImportant2025-09-07

India Participates in BRICS Virtual Summit on Tariffs

Q: Which of the following statements is/are correct regarding the 2025 BRICS Virtual Summit on Tariffs? 1. The emergency summit was convened by Brazilian President Lula da Silva to formulate a response to massive unilateral tariffs imposed by the United States. 2. Prime Minister Narendra Modi chaired the summit as India assumed the BRICS presidency in 2025.

A) 1 only — Statement 1 is correct; Brazil convened the meeting in response to US tariffs. Statement 2 is incorrect; India was represented by External Affairs Minister S. Jaishankar, and Brazil held the BRICS chair in 2025.

In News

What Happened

On September 8, 2025, External Affairs Minister S. Jaishankar represented India at an emergency BRICS virtual summit convened by Brazilian President Luiz Inacio Lula da Silva. The 90-minute meeting was organized to coordinate a bloc-level response to steep unilateral tariffs imposed by the US administration, which included a 50 percent levy on exports from India and Brazil. During the summit, leaders discussed strategies to counter these trade disruptions and protect the economic interests of the Global South. Prime Minister Narendra Modi's decision to delegate attendance to his foreign minister was widely seen as a diplomatic move to balance ties with both Washington and the BRICS coalition.

Why It Matters

This event highlights the growing trade friction between the US and emerging economies, as unilateral tariffs threaten to disrupt resilient supply chains and economic growth. For India, it demonstrated a careful tightrope walk of strategic autonomy, asserting its opposition to protectionist trade barriers while avoiding a direct anti-US posture alongside China and Russia.

Background

History & Context

The geopolitical landscape in mid-2025 saw the US administration adopt aggressive protectionist measures, imposing heavy tariffs ranging from 10 percent to 50 percent on BRICS nations. These economic penalties were heavily tied to Washington's concerns over the bloc's discussions around 'de-dollarisation' and the creation of alternative global payment systems to bypass the US dollar. In August 2025, Brazilian President Lula da Silva initiated calls with BRICS leaders to formulate a unified pushback ahead of the 80th UN General Assembly. India has consistently maintained that while it supports fairer global trade practices, it does not endorse a confrontational agenda against the US currency.

What Changed

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BEFORE: BRICS nations primarily engaged in long-term discussions about internal trade integration and slowly increasing local currency settlements. NOW: The bloc has been forced to adopt an emergency, coordinated diplomatic stance against aggressive US tariff policies and immediate economic threats.
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BEFORE: India navigated US trade relations bilaterally, often resolving friction through direct dialogue and localized trade deals. NOW: India faces blanket 50 percent tariffs and is utilizing multilateral platforms like BRICS to collectively advocate for WTO rules and fair trade practices.
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BEFORE: The US viewed BRICS mostly as a symbolic political forum of emerging economies with limited cohesive economic power. NOW: The US administration is treating BRICS policies as a direct threat to the US dollar's dominance, explicitly weaponizing sweeping tariffs to deter the bloc's strategic financial initiatives.

Prelims Angle

NCERT Connection

This event perfectly illustrates the concepts discussed in Class 12 Political Science Chapter 6, 'International Organisations,' particularly the role of multilateral bodies in addressing global economic disparities. The BRICS summit serves as a real-world application of how developing nations seek to reform the global economic architecture and utilize global platforms to challenge unilateral trade barriers imposed by hegemonic powers.

Practice Questions

Q1

Correct Statement(s)

Which of the following statements is/are correct regarding the 2025 BRICS Virtual Summit on Tariffs? 1. The emergency summit was convened by Brazilian President Lula da Silva to formulate a response to massive unilateral tariffs imposed by the United States. 2. Prime Minister Narendra Modi chaired the summit as India assumed the BRICS presidency in 2025.

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