Lula da silva brics statement: The threats of US President Donald Trump regarding the tariff have been given a befitting reply by Brazilian President Luiz Eneasio Lula Dr. Silva. He bluntly said that the world has changed and now no one needs the emperor. Lula made this statement during the BRICS summit on Monday.

Lula’s statement came after Trump’s warning in which he said that the countries which support the anti -American policies of the BRICS will be imposed an additional import duty (tariff) on them, but the BRICS countries have completely rejected Trump’s allegation.

After the Iran-Israel War, Trump has started implementing his most aggressive tariff policy in international trade. Under this, the US has imposed heavy tariffs on 14 countries including Japan, South Korea, Malaysia and Bangladesh. Trump says that this step has been taken in the interest of US trade deficit and national security. Warning the BRICS countries, Trump reiterated that whatever countries will adopt anti -America stance, they will have to pay 10 percent additional fee. Trump also clarified that no one will be exempted in this policy.

Trump said this in December 2024

Trump said in December 2024 that America will not sit silent if BRICS tries to leave the dollar. He said, “If BRICS countries bring another currency instead of dollars, we will impose 100 percent tariffs on it. Such countries should give up the dream of selling our goods in America.”

Why are Trump angry?

Actually, BRICS countries are planning to create a currency that reduces dependence on US dollars. Trump did not like this. He believes that doing so will weaken America’s economy and strength.

President of Brazil furious over Trump’s tariff statement

Reacting to Trump’s tariff warning, Lula said, “The world has changed. We do not want any emperor. It is a group of countries (BRICS) who wants to find an alternative way to organize the world from an economic point of view. I think that is why BRICS is making many people uncomfortable.”

What did South Africa-China say?

South Africa and China have given restrained and balanced reactions in this case. The two countries termed the role of BRICS as creative and said that its purpose is not to promote global cooperation against anyone.

South African President Cyril Ramfosa said that the purpose of BRICS is not to compete with any global power. He said, “BRICS is not an alliance against any country. Our aim is to promote global cooperation. We also expect a trade agreement with America.”

China also objected

Chinese Foreign Ministry spokesman Mao Ning, while commenting on Trump’s statements during a press conference in Beijing, said, “Tariff should not be used as pressure or political weapon. The purpose of BRICs is to promote ‘Win-Win Cooperation’, not to target any country.” He also reiterated that China is in favor of open and balanced global business.

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Us credit rating downgrade: The world’s largest economy has been seen for the first time in the history of America when its rating was cut by three major rating agencies, ie it was not given the top tier credit rating. Moody has reduced the American sovereign credit rating from triple one to ‘AA1’. The most interesting thing is that since the year 1919, Moody was being given the top rating to America. However, in 2023, he gave a negative outlook to America.

Similarly, S.EdP Global Rating removed the rating of triple ‘A’ from the US in 2011. Whereas Fitch rating also reduced America’s rating from August 2023 to ‘AA+’ from Triple ‘A’.

Rating due to increasing debt

Actually, the biggest reason for reducing the US rating from the credit rating agency is the increasing debt. Moody says that America’s debt has increased rapidly in the last decade. In the year 2024, America’s loan was more than about 35 trillion dollars, while its GDP is about 29 trillion dollars.

Moody estimates that the US government deficit i.e. Federal Deficit can come up to 9 percent of GDP by 2035. Last year it was 6.4 percent. In such a situation, the question is arising that after all, what can have some effect on India and other countries of the world to reduce America’s ratings from the rating agencies?

What effect?

Due to ratings by rating agency, the US government may have to pay more interest than before. Seeing the rating of a country or company, investors decide how much loan will be safe. Apart from this, foreign investors remain confident in the Indian market at this time. But if the trend of global investors changes, then there can be loss in its Indian market too. Overall, now America will have to reduce its debt and deficit to fix its rating.

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