When US President Donald Trump launched his sweeping tariff war earlier this year, he claimed it would “restore American greatness” by making other countries follow Washington’s rules. Instead, it has sparked a global backlash, bringing together countries that once competed against each other, all united by one thing: opposition to what they see as America’s most reckless trade move in decades.
From Europe to Asia, governments accuse Trump of using tariffs as a political weapon. His targets aren’t just rivals like China or Russia, but even long-time allies are getting hit. India, often called a “natural ally” of the US, now faces a massive 50 per cent tariff on its exports to the United States – the highest along with Brazil.
The effects are quickly changing global alliances. BRICS countries, which Trump once hoped to split, are more united than ever. The European Union is openly challenging Washington’s trade demands. Japan and South Korea, key US security partners in Asia, are rethinking their economic ties. But amid all this, Trump is visibly warming to Pakistan’s powerful army chief, General Asim Munir, a partnership viewed with deep suspicion by many of America’s historic allies.
ALSO READ: Trump wanted to break BRICS, his tariff gamble may end up doing opposite | Explained
Speaking to Moneycontrol, foreign policy expert Dr Suvrokamal Dutta sum it up bluntly: “Trump today has problems with each and every one… He has unfolded so many frontiers at the same time that it’s suicidal for the American economy.”
‘Billions coming in’, but at what cost?
Trump’s claim that billions are flowing into the US daily isn’t true. By the end of July, tariff revenue totalled nearly $130 billion, rising steadily through the year, from $8 billion in January to $28 billion in July, a 240% jump from last year. In 2024, tariffs brought in about $79 billion for the whole year. Economist Scott Besson estimates the US could collect up to $300 billion from tariffs in 2025.
But at what cost is this revenue being generated? Apart from provoking retaliation from trading partners, higher tariffs are driving up prices for American consumers and straining supply chains.
Divide-and-conquer strategy backfiring?
Trump’s original playbook was to target multiple countries with selective tariffs, hoping to break their unity and extract bilateral concessions. But his “divide and conquer” approach has boomeranged into a “unite and resist” front. Even non-BRICS economies, from the European Union to Japan, are now closing ranks to object to Washington’s trade aggression.
Calling the tariffs as a “foolish strategy”, Dutta opined, “Trump today has problems with each and every one -- whether it’s the European Union, NATO countries, the UK, Germany, France, Italy, Portugal, Spain, Saudi Arabia, Iran, South Africa, Russia, China, Japan, South Korea, or India. He has unfolded so many frontiers at the same time that it’s suicidal for the American economy.”
Europe: From open pushback to hard-fought deal
The European Union, once willing to tolerate Washington’s protectionism as a passing phase, later went into an open dispute with him. Earlier this week, the EU announced the suspension of retaliatory tariffs it had imposed on US goods after Brussels struck a deal with Washington last month.
The hard-fought will deal see the bloc face 15 per cent tariffs on most of its exports, including automobiles. This is higher than the duties before Trump returned to the White House, but much lower than his threatened 30 per cent.
However, a senior Brussels official, as quoted by The Hindu, said that the EU can always unfreeze its retaliation should anything unexpected happen.
"We put it back into the freezer and we can always take it out if needed, so we can always unsuspend the suspension," he said.
India: Strategic patience wearing thin
India, facing the highest 50 per cent tariffs along with Brazil, is the most vocal critic of Trump’s tariff aggression today. After Trump’s threat to impose additional tariffs on India earlier this week, the Ministry of External Affairs defended India’s continued import of oil from Russia amid criticism from the US and EU, terming such objections “unjustified and unreasonable.”
Responding to questions over energy trade with Russia since the commencement of the Ukraine conflict, the MEA clarified that India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation.
The MEA pointed out that US continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals.
On Trump imposing additional tariffs, the MEA termed his decision as “unfair, unjustified and unreasonable,” and reiterated that it will take all actions necessary to safeguard national interest.
On Thursday, PM Modi delivered a stern message to Trump, saying he will not compromise the interests of the country’s farmers even if he has to pay a heavy price.
New Delhi’s message is clear: it will not bow down to the pressure tactic of the United States, and will look for options to avert the damage from Trump’s tariffs. In the meanwhile, negotiations between the two countries continue, despite several rounds of failed talks. The additional tariffs come into force on August 27, while the US team of negotiators are visiting New Delhi on August 25.
Meanwhile, several lawmakers and experts have warned the Trump administration against jeopardising its ties with India. Clearly, New Delhi’s careful balancing act is fraying as it strengthens ties with Russia and China.
Former US Ambassador to the United Nations Nikki Haley has taken a dig Trump, saying he had given “China a pass” and cautioned him against burning “a relationship with a strong ally like India”.
Haley said in a post on X that Beijing is an adversary of the US and “number one buyer of Russian and Iranian oil,” has been given a 90-day tariff pause by the Trump administration.
“India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don’t give China a pass and burn a relationship with a strong ally like India,” she said.
Moreover, Trump’s intention to impose a 250 per cent tariff on Indian pharmaceuticals, despite the US being dependent on India for essential medicines, has triggered another alarm in New Delhi.
China and Russia: Common cause in confronting Washington
China, already locked in a prolonged trade war with the US, has seized the opportunity, trying to present itself as the leader of a new, tariff-resilient trading bloc. Meanwhile, Russia, facing its own US sanctions, has intensified energy and defence trade with BRICS partners.
The trade spat between China and the US – the two biggest economies – shows no sign of abating even as Trump’s 90-day tariff pause against Beijing ends on August 12. If no common ground is reached by then, both the countries are set to once again place historic tariffs on each other’s imports.
In the meanwhile, Beijing has made overtures to India, seeking reset of ties while strengthening its trade ties with Russia. Putin’s visit to India and PM Modi’s China visit for the SCO later this month have sparked speculations on revival of the Russia-India-China troika and strengthening of BRICS.
Both Beijing and Moscow have openly expressed their support to New Delhi, while criticising Trump’s tariff aggression. The Kremlin said that “sovereign countries should have and do have the right to choose their own trading partners.”
Dr Dutta points out that “even nations with historic differences are coming together in front of a common enemy, which is the United States of America.”
Former US National Security Adviser John Bolton warned that President Trump’s tariff policy could backfire by pushing India closer to Russia and China.
Speaking to CNN, Bolton said the tariffs on India over Russian oil, especially when China faces no such penalties, risk undoing decades of US efforts to align India with Washington against Beijing’s Indo-Pacific ambitions. He added that, ironically, measures meant to hurt Russia could instead drive India to work more closely with both Russia and China in resisting US tariffs.
Japan and South Korea: Alarm at a disruptive ally
When Trump first announced his ‘Liberation Day’ tariffs on April 1, and then the revised tariffs, which came into effect on August 1, one of the prime targets was Asia. Other than India and China, United States’ relations with two of its closes allies – Japan and South Korea – turned tense before recent trade deals were secured.
Despite securing an agreement in which the U.S. pledged to lower auto tariffs from 27.5% to 15% and other tariffs from 25% to 15%, Japan remains uneasy due to persistent ambiguities in the deal. Tokyo is pressing Washington to swiftly implement the agreed cuts and clarify whether the new 15% tariffs will be imposed in addition to existing duties – a scenario known as “stacking – a concern not explicitly addressed in the deal’s documentation and one that has sparked domestic criticism of Prime Minister Shigeru Ishiba’s handling of negotiations.
With South Korea too, tensions flared in April 2025 when President Trump introduced steep 25% reciprocal tariffs on South Korean goods, targeting vital sectors like autos and steel. This move prompted emergency measures at home and initiated tough negotiations, casting a shadow over diplomatic ties.
Though a deal was later reached, reducing the tariffs to 15%, secured just before Trump’s August 1 deadline, it came with lingering friction. South Korea pressed for clarity on key investment and profit-sharing arrangements, while unresolved issues over access to agricultural markets, regulatory barriers, and defence cost-sharing continued to fuel diplomatic unease.
Middle East and Africa: Fraying friendships
Even Saudi Arabia, a long-standing ally, has found itself at odds with Washington over steel and aluminium tariffs. Across Africa, US trade policy is being seen as an extension of neo-colonial control, prompting leaders from South Africa to Nigeria to pivot toward China and India for investment and trade.
South America: United in opposition
Facing 50 per cent and 25 per cent tariffs respectively, Brazilian and Mexican governments are accusing Washington of economic bullying.
Brazilian President Luiz Inacio Lula da Silva has urged BRICS to respond jointly to Trump’s tariffs, casting himself as a defender of global cooperation amid rising trade tensions. Speaking to Reuters, Lula accused Trump of trying to break the multilateral trade system in favour of US-dominated unilateral deals.
Lula has personally spoken with PM Modi, expressing willingness to visit India to deepen trade ties – another sign that Trump’s tariffs are driving America’s potential partners into the arms of rivals.
BRICS: From lose bloc to stronger alliance
What Trump’s tariff war has truly accomplished is accelerating BRICS’ cohesion. Once marked by internal disputes, the bloc is now showing rare unity in resisting Washington’s trade policies.
The revival of Russia-India-China Troika may also be discussed when Trump meets PM Modi in New Delhi. The format, once seen as a counterweight to Western blocs, has gained renewed significance as all three nations face mounting pressure from Washington, particularly through economic coercion.
On August 31, PM Modi will travel to China for the Shanghai Cooperation Organisation summit, a move likely to involve side talks on strengthening BRICS economic cooperation.
The deepening ties among the BRICS members are a clear message to Trump: his tariff and sanctions pressure is driving key global players closer together, not pulling them apart.
Speaking to Moneycontrol, Dr Dutta said: “There are huge, strong emerging economies—India, China, Indonesia, Russia, Brazil, South Africa—coming together in front of a common enemy. This kind of new combination is changing the global balance.”
Trump’s unlikely new friend: Pakistan’s Munir
With major economies distancing themselves, Trump appears to be finding political warmth in unlikely quarters, most notably with Pakistan’s Army Chief Field Marshal Asim Munir. This growing closeness, coming at a time when most world powers view Pakistan with suspicion over its terror links, is raising eyebrows. Critics argue that by aligning with Munir, Trump risks alienating even time-tested allies such as Israel and India.
Trump’s tariff policies are doing what decades of ideological rivalry failed to achieve, creating a common cause among rival powers. BRICS is strengthening, the EU is courting India, Japan is deepening ties with ASEAN, and the US is increasingly finding itself out of the room when global trade norms are being discussed.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
