BRICS Denounces US Tariffs as ‘Illegal and Destabilising,’ Vows WTO‑Based Opposition

Leaders and finance ministers of the expanded BRICS bloc convened in Rio de Janeiro on Sunday to issue a unified declaration condemning unilateral trade barriers and to agree concrete financial‑institution reforms aimed at strengthening the Global South’s voice in the world economy.

In a joint statement, the ten-member group denounced the US tariffs as illegal and destabilising, affirmed support for World Trade Organization rules, and pledged coordinated opposition to protectionism ahead of the WTO’s 14th ministerial meeting in 2026.

Foreign ministers and summit delegates united in rebuking recent US tariff hikes as a violation of WTO principles. They explicitly criticized “indiscriminate” and “coercive” measures, vowing to leverage both bilateral and bloc-level tools to defend their industries.

BRICS Summit

The summit’s opening session highlighted BRICS’ rapid expansion, from five founding members to now include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the UAE, and underlined its growing ambition to reshape the international economic architecture.

Prime Minister Narendra Modi, Brazilian President Luiz Inácio Lula da Silva and South Africa’s Cyril Ramaphosa shared the stage in Rio, while China’s Prime Minister Li Qiang and Russia’s Vladimir Putin joined remotely.

In their declaration, leaders reaffirmed their commitment to multilateralism and called for stronger collective measures against any form of economic coercion.

IMF Governance Reform

During a high‑level finance‑track meeting, ministers from Brazil, Russia, India, China and South Africa agreed to push for IMF governance reform at its December review session.

Their proposals include adjusting quota allocations and voting shares to match current economic output and purchasing‑power parity, enhancing representation for developing and low‑income countries, and ending the tradition of European leadership in favour of merit‑ and region‑based selection processes.

Complementing the IMF reforms, BRICS finance chiefs endorsed the establishment of a BRICS Multilateral Guarantee Fund under the New Development Bank. Modeled on the World Bank’s MIGA, this mechanism will underwrite infrastructure, climate and development projects without fresh capital injections. Pilot guarantees are slated to begin in 2026, marking the first operational step toward using collective financial firepower to catalyse investment across member nations.

De‑Dollarisation Debate

While discussions touched on reducing reliance on the US dollar, exploring local‑currency trade settlements, cross‑border payment systems and even a potential future common currency, the group acknowledged divergent member‑state appetites.

India and Brazil emphasised the need for gradual implementation, whereas China and Russia expressed stronger support for more rapid de‑dollarization. This cautious, phased approach reflects both political sensitivities and practical challenges.