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BRICS+ Study Guide on U.S. Tariffs

The document outlines the structure and agenda of the BRICS+ committee, focusing on the global impact of new U.S. tariffs on trade and developing economies. It emphasizes the importance of understanding the committee's context, key terms, and the necessity for delegates to adhere to their country's stance during discussions. The document also highlights the challenges and opportunities faced by BRICS+ countries in navigating the complexities of international trade amidst rising protectionism.

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0% found this document useful (0 votes)
5 views40 pages

BRICS+ Study Guide on U.S. Tariffs

The document outlines the structure and agenda of the BRICS+ committee, focusing on the global impact of new U.S. tariffs on trade and developing economies. It emphasizes the importance of understanding the committee's context, key terms, and the necessity for delegates to adhere to their country's stance during discussions. The document also highlights the challenges and opportunities faced by BRICS+ countries in navigating the complexities of international trade amidst rising protectionism.

Uploaded by

sheetal.dora
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1

TABLE OF CONTENTS
Chair Forewords​​ ​ ​ ​ ​ ​ ​ 3
Suggestions from the Dias​ ​ ​ ​ ​ ​ 4
Introduction to the Committee​ ​ ​ ​ ​ 6
Introduction to the Agenda​ ​ ​ ​ ​ ​ 8
Key Terms and Definitions​ ​ ​ ​ ​ ​ 10
Major Contexts​ ​ ​ ​ ​ ​ ​ ​ 15
Timeline​ ​ ​ ​ ​ ​ ​ ​ ​ 20
Scope of Debate​ ​ ​ ​ ​ ​ ​ ​ 24
Major Stakeholders​ ​ ​ ​ ​ ​ ​ 28
Possible Solutions​ ​ ​ ​ ​ ​ ​ 31
Questions A Resolution Must Answer (QARMA)​ 33
Further Reading​ ​ ​ ​ ​ ​ ​ ​ 35​
Bibliography​ ​ ​ ​ ​ ​ ​ ​ 37

2
CHAIR FOREWORDS

Head Chair: Kamlesh Narayanan


Kamlesh A.K.A. Cumloo — the ultimate goofball of the century. His sleep
schedule is a sheer tragedy as the guy functions on nearly 4-5 hours of
sleep. And when he’s not napping, Kamlesh is glued to FM24 spending
hours managing virtual football teams and somehow believing he’s the
next Alex Ferguson or Pep Guardiola which his friends mercilessly roast
him for. He is also an avid Manchester United fan ready to passionately
defend the Red Devils against anyone who dares question their
greatness. Oh, and if you ever dare question his gaming credibility,
beware — he’ll casually flex his 8,500 trophies in Clash Royale like it’s a
Nobel Prize.

Co-Chair: Nevisha Choudhary


Running on a schedule designed more by procrastination than any
planner, Nevisha somehow manages to juggle five tasks at once while
convincing herself she’s “totally got this!” If she’s not found enjoying the
mug cakes she just made at midnight (was never just a phase for her) or
having her AirPods glued in, switching between Punjabi bangers and
Don Toliver, she’s probably on a call with her friends, obsessing over
people who don’t know she exists (Sidharth Malhotra, the love of her
life). The GIIS Conference was a pivotal event in Nevisha’s life because it
allowed her passion for debating and spectating to transcend late-night
rant sessions and instead take life in the form of structured and
stimulating debate! Her love for MUNs has her practically kneeling in
anticipation of the event. She is extremely excited to be the chair of this
great committee and hopes to provide you all with a great experience!

3
SUGGESTIONS FROM THE DAIS

1.​ Carefully read this Study Guide and do your best to understand its
contents. All the essential information towards understanding the
agenda is in this document and taking your time to learn it well
will help you gain a clearer idea and will answer any doubts you
may have. Gaining a solid understanding of this material will
better prepare you to engage with the topic and contribute
efficiently during the event.

2.​ Make sure to carry out additional research yourself. This Study
Guide is intended to provide you with a brief overview of the
agenda and some key considerations, but it does not cover
everything you need to know, especially regarding your country's
stance.

3.​ Stick to your country's stance. Do not offer any personal opinions.
As representatives of your country, do not say anything that does
not align with the motives of your assigned country. For example,
if you are the delegate of Russia, becoming allies with the delegate
of the USA, you would be going against your stance. Additionally,
insulting your OWN country or criticising your country is also a
violation of your stance.

4.​ Along with primarily focusing on your country's stance while


researching, also research about your country's allies and
relations because it will help you get a clear idea about their
importance in the agenda. Do not form alliances based on who
your friends are; you must form alliances with your country's
allies only. This is crucial because a country's relationships directly
impact its ability to achieve its goals and maintain its security.

4
5.​ We highly recommend you read the further research links
provided – it will help you to truly understand the problem and
make substantial solutions.

6.​ Lastly, the amount of information to research about might be


overwhelming, but make sure to not stress too much about
researching, and rather take it as a learning opportunity and have
fun!

5
INTRODUCTION TO THE COMMITTEE
The BRICS+ is an association of eleven countries: Brazil, Russia, India,
China, South Africa, Saudi Arabia, Egypt, The United Arab Emirates,
Ethiopia, Indonesia and Iran. It is formally regarded as a political and
economic forum representing the voices of the Global South. In simple
terms, it is a group of countries trying to cooperate together, and project
their voice and role in the world's decision making.

The BRICS+ was formed to build on the earlier BRICS group while
extending its reach to include more developing countries. It aims to:

●​ To improve unity and cooperation among emerging economies


●​ To increase representation in global organisations, including the
UN, IMF, World Bank and WTO
●​ To also cooperate in economic and trade policy arrangements to
promote fair trade practice in trade relations
●​ To promote social inclusion, development, and sustainable models
of development in their regions.

Although the group is informal and does not have a fixed charter or
headquarters, it holds annual summits that provide an opportunity for a
group discussion of priorities and to make decisions together.
Throughout its history, BRICS has developed institutions to coordinate
finance and investment on behalf of its members and partners, such as
the New Development Bank (NDB) and the Contingent Reserve
Arrangement (CRA).

Since expansion to BRICS+ in 2023, the bloc has been even more
prominent in world affairs. With large populations, resources, and
markets, it balances global power flows and gives developing countries a
bigger voice.

But challenges still exist:

6
​ •​ Internal conflicts (members have clashing national
interests).
​ •​ Coordination issues (decisions need consensus).
​ •​ External pressures (from bigger economies).

Regardless of these challenges, BRICS+ remains one of the more


prominent platforms for cooperation amongst emerging economies.

7
INTRODUCTION TO THE AGENDA

AGENDA- Evaluating the Global Impact of the New


U.S. Tariffs on Trade and Developing Economies.

In recent years, countries throughout the world are becoming more


interconnected through trade. Countries export goods (such as
electronics, clothing, or food) to other countries across the globe and
they import goods that they need from other countries. But what
happens when a country suddenly makes these goods more expensive
by adding a “trade tax”? Think of it like a toll gate on a highway: every
truck carrying foreign goods has to pay extra before entering. This is
exactly what is happening more and more in the United States over the
past decade. Tariffs are instituted to help protect a country's own
industries and jobs. However, they also make life harder for other
countries that sell to the U.S. This is especially damaging for developing
countries in the Global South, which depend on exports to survive and
grow.

Essentially, a tariff is a cost that a government charges on the price of a


foreign good. So, if the United States charges a tariff on steel that imports
from Brazil, that makes it more expensive for American companies
purchasing that steel. The US has started imposing more tariffs in 2016,
and in particular during the trade war with China. The number of
countries and a wide variety of industries affected has increased
tremendously and has even impacted significant industries in
agriculture, technology, and energy. Asian countries have been facing
increased prices, shrinking exports, and general uncertainty due to
these developments. This is a reality that these countries have no control
over, but a reality they must contend with.

8
Already several countries have reacted against U.S. tariffs with their
own counter-measures, while other countries are attempting to increase
or build trade with other countries. BRICS+ countries like Brazil, Russia,
India, China, South Africa and others are also attempting to stabilize and
equalize trade using local currency, their own financial institutions, and
collective trade unions that exclude the Western powers. At the same
time, global institutions like the World Trade Organization (WTO) and
International Monetary Fund (IMF) are facing pressure to modernize
how they create and enforce trade regulations; however, change takes
time, and small economies cannot wait forever.

In this committee, delegates will look at the real-world implications of


U.S. tariffs and how BRICS+ countries can collaborate. Will we be able to
develop stronger trading systems between developing economies?
Should we use mechanisms like digital currencies, or pooled reserves?
Would we be better off retaliating, or collaborating?

9
KEY TERMS AND DEFINITIONS
1.​ Tariff: A fee of money paid on products imported from another
country. For example, if the U.S. sources steel from Brazil and
charges a tariff on that source, U.S. buyers will pay more for that
steel.

2.​ Protectionism: A government action opposing outside


interference in domestic industries by limiting foreign trade
through tariffs, quotas, or just barriers; not to be confused with
nationalism which typically discriminates against foreigners.

3.​ Developing Economy: A developing economy is a country that is


still growing its industries and infrastructure. It's not yet as
wealthy or advanced as developed countries.

4.​ Emerging Market: An emerging market is a country that is


moving from being a developing, or poorer, nation toward
becoming a more developed one. It's a country with a growing
economy that is becoming more industrial and has some of the
features of a modern economy, like a strong GDP, extensive
industry, and a well-defined social class structure.

5.​ Global South: A broad term for regions such as Africa, Latin
America, and parts of Asia and Oceania that are less developed in
economic terms than Global North countries, in which production
ownership and social class distinctions are limited; in the Global
South, economic development is typically conceived through an
unqualified linking of economic growth with capital accumulation.

10
6.​ Consensus-based Decision-making: A group process for decision
making and problem solving in which all members of a group
develop agreement to support a decision in the best interests of the
whole. In a consensus solution, all group participant input is
carefully considered, and there is reasonable good faith effort to
solve all legitimate concerns. Consensus is used by BRICS+.

7.​ World Trade Organization (WTO): The WTO is an


intergovernmental organization that is in charge of setting the
rules for trade between nations and conduct predominantly trade
dispute negotiation and resolution; the goal of the WTO is to
ensure that the global economy, including infrastructure, can be
traded without impediments, self-imposed limitations, and/or
unnecessary interferences.

8.​ International Monetary Fund (IMF): The IMF works to achieve


sustainable growth and prosperity for all of its 191 member
countries. It does so by supporting economic policies that promote
financial stability and monetary cooperation, which are essential
to increase productivity, job creation, and economic well-being.

9.​ De-dollarization: A significant reduction in the use of dollars in


world trade and financial transactions, decreasing national,
institutional and corporate demand for the greenback.

10.​New Development Bank (NDB): A multilateral development bank


formed by the BRICS to mobilize funds for infrastructure and

11
sustainable development initiatives in emerging markets and
developing countries.

11.​Contingent Reserve Arrangement (CRA): A commitment by the


BRICS countries to provide funds to other BRICS countries,
including reserve currency countries, that are dealing with
balance of payments issues.

12.​Trade War: An economic struggle among different countries that


takes the form of protectionist policies, which can come in the
form of barriers to trade. Barriers to trade that can be imposed in
a trade war include tariffs, quotas, domestic subsidies, and
devaluation of currency.

13.​Import Quota: An import quota is a barrier to trade that restricts


the amount of one particular type of good that can be imported.
Import quotas typically include licenses as well. For example, a
country may have a quota on the amount of a particular breed of
citrus fruit that can be imported into it.
14.​Free Trade: A policy indicating the government does not charge
people for importing or brokering products from other countries,
and does not charge exporters to export their products to other
countries.

15.​Free Trade Agreement (FTA): An agreement between countries


to lessen or remove tariffs and other barriers to trade to make
trade easier between them.

12
16.​Bilateral Trade: Trade between two countries.

17.​Multilateral Trade: Trade agreements or arrangements that


involve more than two countries.

18.​Export Restriction: Government-imposed restrictions on sale and


distribution of certain technologies, like cryptographic
technologies, into other countries. These laws typically restrict the
transfer of export, including advanced encryption capabilities, to
potentially hostile countries.

19.​Retaliatory Tariffs: A tax imposed by one country on goods


imported from a foreign country as a way to retaliate against a
foreign country for levying a similar tax.

20.​Economic Sanctions: Acts taken by a country or organization


against the economy of a state or government, usually through
allegations like refusing to trade to press compliance with a law or
rules.

21.​Supply Chain: A complete system consisting of producing and


delivering a product or service; from the initial stage of sourcing
the components of raw materials to the delivery of that product or
service to end users.

22.​Unilateralism: A policy where a country acts on its own, without


seeking the agreement or cooperation of other countries.

13
MAJOR CONTEXTS

Trump’s Nationalist and Assertive Tariff Policy


Upon returning to the White House after 4 years, Donald Trump wasted
no time before immediately implementing an aggressive tariff policy
which reflected his “America First” ideology which aimed to push
forward the economic nationalism and protectionism of the country.
This framework of imposing high tariffs on several other countries was
with the objective of protecting the domestic primary sector, reducing
trade deficit, creating employment opportunities, and using trade as a
mechanism for strategic leverage. The world was very concerned about
the economic and strategic uncertainty that arose due to the sudden,
stark trade approach the U.S. is following. Nations and businesses are
worried about potential trade and supply chain disruption.

Major Tariff Orders on Canada and Mexico


On February 1, 2025 the U.S. imposed a 25% tariff on almost all imports
from Canada and Mexico, excluding Energy & Oil products, which were
taxed at 10%. This policy was essentially directed towards encouraging
the Americans to buy domestically produced products whilst also
handing the U.S. bargaining power in revising and amending aspects of
the USMCA agreements. The tariff disrupted the inter regional supply
chain and also increased cost for business enterprises and consumers.
Both Canada and Mexico were alarmed by the sudden imposition of
tariffs, leading them to question the reliability of the USMCA agreement

14
Temporary suspension of implementation of tariffs
on small low value packages (De minimis) from
China
On February 7, 2025 the U.S. temporarily suspended the implementation
of tariffs on small low value packages (De minimis) from China. This
initiative was taken to ensure effective administrative setup and to
maintain smooth operations in local commerce which provides relief to
small local enterprises that count on low value Chinese imports.

Steel and Aluminum Tariffs

On February 10, 2025 The U.S. sanctioned a 25% tariff on all imported
steel and aluminum to all nations. Whilst this policy was intended to
safeguard and bolster the U.S. metal industries and lower reliance on
foreign imports, it also escalated tension with their own allies and trade
partners especially Canada & Mexico - casting doubt on the reliability of
the U.S. commitments on the USMCA . Several Countries viewed this
policy to be very unilateral and an act of protectionism undermining the
principles of multilateral trade.

Reciprocal Trade Tariffs

On February 13, 2025 the U.S. announced a reciprocal trade tariff policy,
which meant that Washington would match the tariffs other countries
impose on U.S. exports . This policy was implemented to push other
nations to lower their trade tariffs which thereby, resulted in a “level
playing field". This policy was also viewed as a bit off from the WTO’s
principle of multilateral free trade. It also escalated tensions between
Washington and other blocs and nations (such as the EU & China) and
also raised uncertainty for many businesses, especially those dealing
with exporting goods.

15
Tariffs on Canada and Mexico come into effect
On March 4, 2025 the tariffs on Canada and Mexico took effect with the
exception of all automobiles built under the USMCA agreement were
granted a one-month deferral in anticipation to provide smoother
transition and avoid supply chain instabilities. This led to the cost
inflation in many of the industries namely agriculture and energy
among others, whereas gave U.S. based automakers (like Tesla and Ford)
a buffer period to allow them to make any adjustments and alterations
in their logistics and supply chain. Both Canada and Mexico viewed this
as a betrayal and a direct attack towards them.

Reinforcement on the Steel and Aluminum tariffs

Washington intensified its focus on the 25% tariffs on steel and


aluminum imports and made abundantly clear that any country
attempting to evade tariffs will face stricter penalties. The reinforcement
of this tariff was aimed to ensure domestic manufactures also remain
competitive and also showcased the United States' strict zero tolerance
for unfair practices. This initiative increased the cost of consumer goods,
construction and energy sector. Countries like China, Canada, Russia and
the EU which are heavy exporters to the U.S strongly criticized this
initiative and considered it to challenge the WTO’s framework and
principles. Developing economies that are exporters to the U.S. like
India, Brazil among others feared the potential economic loss that would
occur due to the deteriorating U.S. demand. WTO also warned this
initiative could set a dangerous precedent of unilateralism.

16
Imposing tariffs on countries importing Venezuelan
oil was signed

On March 24, 2025 the imposed a 25% tariff on any goods from any
countries that import Venezuelan oil under the Executive order
14245 ,which will come into effect from April 2. The order was
signed to pressurize the Venezuelan government under Maduro’s
regime by discouraging Venezuela's oil export consequently
weakening Venezuela's key revenue source. It potentially increases
demand for American oil producers.

This move is not only a threat to Venezuela but also a threat to


those nations that are dependent on Venezuelan oil imports.
Several nations expressed concern about this move as it was
another violation of multilateral trade norms the U.S. has
committed. Several BRICS members (especially China and India)
scrutinized this policy calling it “Economic Blackmail”, Russia
calling them out for “Politicalizing oil market” and vowed to
continue utilizing Venezuelan oil imports in non - dollar
currencies. The EU had a mixed response, some criticizing the U.S.
for going beyond jurisdiction whilst others aligned with this policy.
Caribbean nations that depended on Venezuelan oil imports also
criticized the U.S. for exceeding authority

Auto Tariff Expansion


The U.S. expanded its tariffs on all imported automobile
manufacturing parts (including electrical components like engines,
transmission etc), passenger vehicles and light trucks (2025, March
27). This tariff expansion was aimed to minimize its reliance on
imports and bolster the American automobile manufacturers. As a

17
result the global supply chain was disrupted and prices of vehicles
(including the ones made by U.S. car manufacturers) rose sharply
as they relied upon imported auto parts hence facing a cost hike.
Export heavy economies like Germany, Japan, South Korea and
Mexico heavily hit, as their automobile industries are highly reliant
on U.S. consumers. The EU was outraged about this expansion as
cars are its latest export to the U.S. hence concerned about the
potential economic loss. Japan & South Korea strongly opposed this
initiative as automobiles are their biggest export sector. Mexico
and Canada were also enraged as they had just met with aluminum
and steel tariffs.

Liberation Day Tariffs

On April 2, 2025 a minimum of at least 10% tariff on almost all imports


into the US, with higher reciprocal tariff rates for certain countries
(based on the unfair practices and trade imbalance the country has
committed). An additional tariff of 25% was imposed on vehicles and
auto parts imported into the US, except those imports qualifying under
the USMCA. The U.S. announced these tariffs to renegotiate more
favourable deals with other nations and also to reduce trade deficit
fulfilling Trump’s “America First” Ideology. Due to this initiative, global
trading partners began to switch supply elsewhere away from the
United States. Developing economies (including the U.S. aligned
countries like Brazil) opposed the move. The EU saw this as a declaration
of a tariff war, China strongly criticised and called it “economic
coercion”. Members of the WTO met up in an emergency consultation
and accused the U.S. of violating global trade rules.

Temporary Pause on newly announced tariffs but


sharply increased tariffs for China
On April 5 - 9, 2025 the US abruptly paused the newly announced tariffs
for 90 days to prevent further disruption and worsening of the situation.
This initiative was taken to provide breathing room for the countries,

18
businesses and the global market. Despite the temporary halt, China
continued to be heavily targeted by the US with their tariff increasing to
approximately 145% on selected goods. This was a declaration of
economic war with China.

90 Day truce between China and the U.S.

On May 12, 2025, the U.S. and China agreed to a 90-day tariff truce,
where the U.S. agreed to reduce its tariffs on Chinese goods from an
extraordinary average of 145% down to 30% in return China agreed to
cut tariffs on U.S. Imports. The aim was to decrease the potential risk of
a recession, restoring trade and supply chain that was previously
disrupted. Companies which were initially caught up in the turmoil
viewed the truce as a temporary relief.

Reducing tariff on de-minims

On May 13, 2025, In line with the broader U.S. China tariff truce (which
took place the day before on May 12), the U.S. lowered tariffs on
de-minims from 120% to 54%. This adjustment was intended to lessen
the financial burden of small businesses and American e-commerce
platforms, which were coping up with the high import costs. China
perceived the initiative to be a signal that the U.S. was making deliberate
efforts to ease trade tension. Though not directly affected, the EU
referenced this as indication of a potential step to leverage power when
the U.S. tariffs were negotiable under pressure.

Threat of tariffs on EU imports and Apple products.


On May 23, 2025, the U.S threatened to raise its tariff on all EU
imports to 50%. Furthermore, the U.S. also pressured Apple by
threatening a 25% tariff on all imported Apple items from

19
elsewhere, pushing Apple to manufacture its products
domestically, which would produce additional employment
opportunities in the United States . This initiative was carried out to
bolster the domestic industries and to pressurize the EU to remove
the so-called “unfair trade practices” by the United States. Apple
faced pressure to shift its production to the U.S., but in doing so
would create an immense cost surge.

U.S. temporarily halting tariff enforcement until


July 9th
On May 25, 2025 The White House pushed back the implementation
of its planned 50% tariffs on EU imports until July 9, 2025. This
measure was intended to enable further negotiations. It also eased
global markets (including stock markets Frankfurt and Paris) and
American businesses that relied on EU goods did not have to face
sharp price spikes. The EU welcomed this short term solution but
demanded for a long term settlement.

United States Court of International Trade.


On May 28, 2025 The U.S. court of international trade issued a
ruling that Trump's broad tariff imposed under the International
Emergency Economic Powers Act (IEEPA) surpassed the legal
authority. Therefore enforcement of several tariffs that did not
have any link to an emergency situation was blocked. The EU,
Canada and Mexico applauded the ruling.

Letters to 14 countries to reinstall reciprocal tariffs


On July 8, 2025 the U.S. sent formal letters to 14 countries issuing a
renewed high reciprocal tariff from initially 25% to 40% with exact
rates positioned to match or exceed the tariff level of these

20
countries imposed tariff level on US. This initiative reflected
Trump's “America First” ideology and the move was presented as a
“fair trade enforcement measure”. Several countries that were
included in the list saw this as a provoking rise in tension.

West African nations relieved from U.S. tariffs


On July 9, 2025 West African nations (Gabon, Guinea-Bissau,
Liberia, Mauritania and Senegal) will be excluded from reciprocal
tariffs that are planned to be imposed on other nations starting on
August 1. This initiative was taken to maintain goodwill with West
Africa and encourage trade cooperation.

Tariffs on all Brazilian goods raised to 50%


On August 1, The White House sharply raised tariffs on all the
Brazilian imported goods to the U.S to 50% due to rising diplomatic
tension between both the countries and to exert pressure on Brazil
to alter its trade policies. Due to this, exports faced a surge in cost
and trade relations between Brazil and the U.S. heightened.

21
TIMELINE

Date Events Description

January 20 , Donald Trump was Upon returning to the White


2025 inaugurated as the House, Trump intensified tariffs
47th US President to protect American industries
and aimed to take initiatives to
reduce the trade deficit

February 1, A series of Executive The U.S. imposed a 25% tariff on


2025 orders were signed almost all imports from Canada
imposing major and Mexico, excluding Energy &
tariffs on Canada Oil products, which were taxed at
and Mexico.​ 10%. This event raises questions
about the reliability of trade
commitments made under the
USMCA

February 7, Temporarily Tariffs on small packages (de


2025 suspended the minimis) from China are delayed
implementations of to allow time to ensure effective
tariffs on small low administrative setup and to
value packages (De maintain smooth operations in
minimis) from China local commerce.

February 10 , Steel and aluminum The White House sanctioned a


2025 tariffs (without any 25% tariff on all imported steel
country exemptions) and aluminum to all nations,
aiming to bolster the U.S. metal
industries.

February 13 , Reciprocal Trade The U.S. announced a reciprocal


2025 Tariffs trade tariff policy which meant
that Washington would match
the tariffs other countries impose
on U.S. exports.

22
March 4 , Tariffs on Canada Tariffs on imports from Canada
2025 and Mexico come and Mexico took effect on this
into force day. A one-month deferral was
specifically granted for vehicles
built under the USMCA (United
States-Mexico-Canada
Agreement) for smoother
transition.

March 12, Stricter The 25% tariffs on steel and


2025 reinforcements on aluminum imports (which were
the steel and issued on Feb 7) was reinforced.
aluminum tariffs The US made it very clear, any
policies country attempting to evade
tariffs will face stricter penalties.

March 24, Executive Order The U.S. imposes a 25% tariff on


2025 14245, titled any goods from any countries
imposing tariffs on that import Venezuelan oil
countries importing ,which will come into effect from
venezuelan oil was April 2. This measure was taking
signed place to pressurize the
Venezuelan government under
Maduro’s regime.

March 26, Auto Tariff The U.S. expanded its tariffs on


2025 Expansion all imported automobile
manufacturing parts (including
electrical components like
engines, transmission etc),
passenger vehicles and light
trucks.

April 2, 2025 Liberation Day :- A minimum of at least 10% tariff


Announcing on almost all imports into the US,
sweeping tariffs with higher reciprocal tariff rates
for certain countries (based on
unfair practices and trade
imbalance). An additional tariff
of 25% was imposed on vehicles

23
and auto parts imported into the
US, except those imports
qualifying under the USMCA.

April 5–9, Temporary Pause on The US abruptly paused the


2025 newly announced newly announced tariffs for 90
tariffs but sharply days to prevent further
increased tariffs for disruption and worsening of the
China situation. This initiative was
taken to provide breathing room
for the countries, businesses and
the global market. Despite the
temporary halt, China continued
to be heavily targeted by the US
with their tariff increasing to
approximately 145% on selected
goods

May 12 , 90 days tariff truce In order to prevent further


2025 between US and escalation of trade tensions, the
China U.S. and China agreed to a 90-day
tariff truce. In accordance with
the truce, the U.S. agrees to lower
tariffs on Chinese goods from
145% to 30% and in exchange,
China agrees to cut its tariff on
U.S. imports.

May 13 , Reducing tariffs on In line with the broader U.S.


2025 de-minims China tariff truce (which took
place the day before on May 12),
the U.S. lowered tariffs on
de-minims from 120% to 54%.
This adjustment was intended
to lessen the financial burden
of small businesses.

May 23 , Threat of tariffs on The U.S threatened to raise its


2025 EU imports and tariff on all EU imports to 50%.

24
Apple products. Furthermore, the U.S. also
pressured Apple by threatening a
25% tariff on all imported Apple
items from elsewhere, pushing
Apple to manufacture its
products domestically, which
would produce additional
employment opportunities in the
U.S.

May 25 , U.S. temporarily halt The White House pushed back


2025 on tariff the implementation of its
enforcement until planned 50% tariffs on EU
July 9. imports until July 9, 2025. This
measure was intended to enable
further negotiations.

May 28 , United States Court The U.S. court of international


2025 of International trade issued a ruling that
Trade. Trump's broad tariff imposed
under the International
Emergency Economic Powers Act
(IEEPA) surpassed the legal
authority. Therefore enforcement
of several tariffs that did not
have any link to an emergency
situation was blocked.

July 8, 2025 Letters to 14 The U.S. sent formal letters to 14


countries to reinstall countries issuing a renewed high
reciprocal tariffs reciprocal tariff from initially
25% to 40% with exact rates
positioned to match or exceed the
tariff level of these countries
imposed tariff level on US
exports.

July 9, 2025 West African nations West African nations (Gabon,


relieved from U.S. Guinea-Bissau, Liberia,

25
tariff Mauritania and Senegal) will be
excluded from reciprocal tariffs
that are planned to be imposed
on other nations starting in
August

August 1, Tariffs on all The White House sharply raised


2025 Brazilian goods tariffs on all the Brazilian
raised to 50% imported goods to the U.S to 50%
due to rising diplomatic tension
between both the countries and
to exert pressure on Brazil to
alter its trade policies.

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SCOPE OF DEBATE

1.​ Economic Impact of U.S. Tariffs on Global Trade

The rise in tariffs in the United


States has shifted trade flows all
across the globe. For example,
when the U.S. imposed tariffs
on Chinese technology goods in
the 2018–2019 trade war, it not
only impacted Chinese exports,
it shifted their supply chains in
such a way that other countries,
like Vietnam and Malaysia, also
had to move quickly.

Even in contexts where developing economies are selling agricultural


products, minerals, or other manufactured goods to the US, tariffs on
their products will often raise prices and limit their ability to compete in
the US market. The ripple-on effect raises prices across the world - for
instance, tariffs like this increase prices for steel, electronics, and food -
making universality inherently more expensive.

For BRICS+ members this creates a situation where their industries can
at best have lost access to a large market and affected the smaller
economies they are dependent on - leaving them unstable as well. The
more simplistic argument related to production related to tariffs has not
supplied too much in terms of how it can hurt international supply
chains, initiate slower global growth and add more inequality for both
rich and poor countries.

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2.​Consequences for Developing Economies

Developing countries are perhaps the most exposed when powerful


nations resort to protectionism. Tariffs restricting agricultural ranging
exports from countries like Ethiopia, or palm oil imports from Indonesia
are particularly damaging when they come from access to major
markets. It is also reasonable to expect that many of these developing
countries will not have the capacity to actively diversify their export
options quickly, nor absorb the economic shock trade barriers will cause
for them. Tariffs and barriers are also likely to discourage foreign
investment in developing economies, mainly because businesses
otherwise invest in places they can access securely and relatively easily.

In the long run, this means slower industrial development, less job
creation, and lower income for workers. Globally, rising protections can
leave developing countries embedded in poverty and dependency cycles,
while continuously widening the gap between the Global North and
Global South. As previously stated, the scope of the debate is more than
tariffs on one or two countries, but overall, the extent to which
protectionism will impact the future growth of entire regions.

3.​Political and Diplomatic Dimensions of Tariffs

Tariffs are used as both economic mechanisms and political tools. As


economic measures, tariffs are often employed merely as a sign or as
pressure in greater political issues or diplomatic struggles. The U.S.'s
tariffs on Russian metals stemmed in part from political disagreements,
while U.S. tariffs on Chinese technology were derived from a larger
strategic rivalry in sectors of the economy involving key high-tech
developments.

Tariffs restrain not only between the U.S. and the countries against
which the tariffs are targeted, but cause tension in the international

28
system, as the U.S.'s allies and trade partners are left to grapple with
whether they are willing to align with the U.S., or adjust their own
policy. As members of BRICS+, it raises the questions of whether the
tariffs are fairly assigned or simply a part of the geopolitics of
competition.

Discussions about tariffs more clearly articulate the risk of increased


rationalization toward polarized international politics, whereby trade is
just another aspect of political competition, with no regard for political
cooperation. Internationally, tariffs represent the emergence of a
growing threat to the norms of global multilateralism, eroding
institutions that would allow for peaceful and rules-based solutions to
trade quarrels.

4.​Long-Term Shifts in the Global Economic Order

One of the most complex questions in this debate is whether U.S. tariffs
are a blip in time or a fundamental change in the economic landscape.
Analysts/narrators argue that if tariffs are used repeatedly, they could
lead to a more multipolar world economy. For example, China and the
BRICS+ countries would promote trade in local currencies and begin
developing new financial institutions such as the New Development
Bank. Should this trend continue, global trade systems may not be as
reliant on traditional Western systems.

On the other hand, sustained levels of protectionism could slow down


economic growth at the world level, producing instability in developing
economies and stalling agenda 2030 objectives. The debate is broad
here: Will tariffs push the world to adopt fairer trade systems that
feature broader voices, or will they serve to deepen divisions and create
more competition? In some respects, this is where BRICS+ comes into
play around the future of international trade and new forms of
international economic relations.

29
5.​Impact on Technology and Innovation

Technology is like the engine that drives a country’s growth. Tariffs act
like barriers, blocking access to essential parts– electronics,
semiconductors, and machinery. Without these, countries, especially the
developing ones, struggle to grow and innovate. Innovation needs not
just ideas and skilled people, but also the tools to turn ideas into reality.

Tariffs also make international research harder. Imagine engineers in


different countries trying to develop renewable energy, but trade
barriers prevent them from sharing tools or components. Progress
slows, and many ideas may never reach their potential. For developing
countries, this can stall growth and limit their opportunities in advanced
industries. At the same time, this widens the gap between wealthy and
poorer nations. Tariffs don’t just affect trade– they shape who leads in
global innovation.

Delegates are expected to explore how tariffs and trade barriers affect
technology and innovation, and discuss their impact on developing
countries.

30
MAJOR STAKEHOLDERS

1.​UNITED STATES OF AMERICA


Upon returning to the White House president Trump brought a Tariff
policy that was driven by the “America First” ideology, valuing
strengthening of the domestic economy, reducing trade deficit and
creating more employment opportunity over dependency of foreign
imports. Many nations perceived this approach to be heavily assertive
and unilateral which is against the WTO principles. The U.S. leverages
tariffs to renegotiate deals and agreements (especially trade) with the
USMCA, EU among others and also uses tariffs as means to pressurize
nations and cooperations.

2.​CHINA
China leverages BRICS as a vehicle expressing anti western rhetoric and
promoting alternative initiatives that challenges western led financial
and economic order which are often perceived to be hawkish by the
West. China views BRICS as an opportunity to grow its regional power
and strengthen relations within the bloc. China has been the prime
target of the tariff plan, at one time even reaching as high as 145%. The
U.S. tariff plans have profoundly impacted Chinese logistics and supply
chains. China recognizes U.S. actions as “economic coercion”.

3.​BRAZIL
Brazil stands for free, fair and equitable global trade. Brazil advocates
for multilateralism and firmly opposes and criticizes the U.S. for its
protectionist tariff trade policies. Brazil's economy is quite heavily
reliant on exports — particularly in the agricultural sector (including
soybean and soybean) and sees these tariffs to be a threat to its
economy. Unlike China and Russia, Brazil is seen more as a regional
power in BRICS and Latin America.

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4.​INDIA
Similar to Brazil, India is also recognized more of a regional major
power but an emerging economic giant. India views BRICS as a platform
for promoting itself as a leader of South Asia and deepening relations
with other bloc members. India has oftentimes criticized the United
States’ tariff approach calling them out as “economically blackmailing”
countries. India is aiming to diversify its markets and wants to
safeguard its export sector from U.S. tariffs.

5.​EUROPEAN UNION
Representing an economical and political bloc primarily located in
Europe, the EU faces supply chain disruption due to the direct attacks
from the U.S. tariffs (especially in the automobile, steel and aluminum
sector). The bloc which firmly stands for free multilateral trade
recognizes U.S. tariff policy as highly protectionist and unilateral. It
aims to safeguard its supply chain consistency and export dependent
economy.

6.​RUSSIA
A global superpower and a crucial member of the BRICS, Russia whilst
not being directly affected, more so indirectly affected by the U.S. tariffs
as it faces supply chain disruptions that impact exporting of goods.
Similar to China, Russia views the U.S. tariff policy as a form of
“economic coercion”. Russia utilizes BRICS as a platform to grow their
regional relevance and promote alternative economic initiatives that are
generally viewed as “hawkish” by the West.

32
POSSIBLE SOLUTIONS

Reciprocity Rules with Safeguards backed by WTO

Request an oversight operation from WTO, under which all reciprocal


tariffs must be fully informed, justified and transparent under WTO
supervision. This mechanism allows for constant surveillance of tariff
actions, ensuring that no country can impose measures that are harsh,
unreasonable or overly harmful to trading partners. Also can introduce
a Reciprocity safeguard clause in the event that a nation raises
disproportionate tariffs, the conquered nation may request WTO for
exemptions and countermeasures. This solution is not only a legitimate
mechanism of fairness under multilateral supervision but also could
promote and strengthen regional intra-BRICS+ trade.

Sectoral Agreements

Members of the BRICS+ can negotiate specialised sectoral restrictions in


those industries that are most targeted by the U.S. tariffs including :-
steel & aluminium, automobile and agriculture. This agreement would
allow the bloc to protect sensitive sectors and implement
countermeasures in a unified manner. Moreover, these sectoral
cooperation can strengthen the bargaining power in negotiations with
the United States, essentially ensuring adjustments and tariff policy
made are not unfair. This measure impacts American exports in sectors
which it tries to take control over.

De Dollarization in Trade

The BRICS can expand the use of local currencies or create a new BRICS
reserve currency for international transactions. This can be done, by
initially beginning to de- dollarize trade with strategic commodities like

33
oil, gas, steel & aluminum. These BRICS+ hold a major share of these
commodities. By settling into this framework, countries can reduce
reliance on the U.S. dollar, undermining the U.S. financial influence.
This strategy would also strengthen intra-bloc trade and provide a more
predictable framework for international commodity trade.

34
QUESTIONS A RESOLUTION MUST
ANSWER (QARMA)

1.​ What can BRICS+ and the wider world do to mitigate the potential
effects of U.S. tariffs on international trade for developing
countries?
2.​ How can we shield global supply chains from abrupt disruptions
that stem from protectionist policies?
3.​ What should BRICS+ do to advocate for reforms in international
organisations like the WTO, IMF and World Bank given the
increase in protectionism?
4.​ How can developing countries build resilience to trade barriers
without losing connection with global markets?
5.​ To what extent do tariffs pose a risk to trade becoming a tool of
global politics, and how should countries combat this challenge,
while ensuring stability in international relations?
6.​ Should BRICS+ prioritise improving internal cooperation and trade
within the bloc, or establishing broader coalitions with other
developing countries to combat practices of protectionism?
7.​ How can tariffs and protectionist measures impact development
against the backdrop of sustainable development goals adopted by
UN member states, and what alternatives exist to ensure the
activity of global development does not slow?
8.​ How can countries balance their national interests such as job
protection, security, and strategic autonomy with the global need
for open and fair trade?
9.​ How should the resolution address the use of non-tariff barriers
(NTBs) and export bans ,especially in strategic sectors like
technology and rare earths?

35
FURTHER READING
1.​ About the BRICS. (n.d.-b). [Link]

2.​ Ferragamo, M. (2025b, June 26). What is the BRICS group and

why is it expanding? Council on Foreign Relations.

[Link]

y-it-expanding

3.​ WTO | News - What�s happening at the WTO. (n.d.).

[Link]

4.​ Global Economic Prospects. (n.d.). World Bank.

[Link]

prospects

5.​ Key statistics and trends in trade policy 2024 | Tariffs, trade

agreements, non-tariff measures and trade defence

measures. (2025, May 23). UN Trade and Development

(UNCTAD).

[Link]

-policy-2024

6.​ BBC News. (2018, July 6). China hits back after US imposes

tariffs worth $34bn.

[Link]

Recommended Resources for Beginners

36
1.​ CrashCourse. (2015, November 20). Imports, Exports, and Exchange Rates: Crash

Course Economics #15 [Video]. YouTube.

Imports, Exports, and Exchange Rates: Crash Course Economics #15

2.​ BBC Newsround. (2025, April 3). President Trump announces global tariffs |

Newsround [Video]. YouTube.

President Trump announces global tariffs | Newsround

3.​ Khan Academy. (2024, October 16). International trade agreements [Video].

YouTube. [Link]

4.​ TRT World. (2025, May 6). US-China trade war explained [Video]. YouTube.

US-China trade war explained

5.​ TIME. (2025, January 7). How tariffs work [Video]. YouTube.

[Link]

37
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