BRICS Summit 2025: Jaishankar Warns Against Mixing Trade Policies with Geopolitical Issues Amid US Tariffs

Why in News

India's External Affairs Minister S Jaishankar joined a virtual meeting of BRICS leaders on September 8, 2025, called by Brazil's President Luiz Inacio Lula da Silva. He spoke out against connecting trade rules to things outside of business, like politics or sanctions. This was said while talking about recent US decisions to add high taxes on goods from India and Brazil. The meeting happened because of growing worries about unstable world trade, and Jaishankar stood in for Prime Minister Narendra Modi. Leaders from China, Russia, and others also took part to discuss ways to make global economy fairer for everyone.

Key Points

1. Jaishankar called for a steady and reliable setup for world trade and investments, saying business ways should be open, clear, and good for all countries.
2. He pointed out problems with raising trade walls and especially warned that tying trade actions to non-business topics makes deals harder and hurts world economy balance.
3. The US has put a 50% tax on exports from India, plus an extra 25% fine because India keeps buying oil from Russia, which Jaishankar hinted at as an example of how this affects people in poorer countries.
4. He asked BRICS countries to look at their own trade inside the group and fix uneven flows, like India's big shortfalls with some members such as China, to find quick fixes.
5. Jaishankar pushed for fast talks to end fights in places like Ukraine and the Middle East, as these have made food, energy, and farm supplies harder to get for growing nations.
6. He talked about changing big world groups like the United Nations and its main council to better handle issues like weather changes and goals for better living.
7. Even with US taxes, India's trade with Russia grew to a high of $68.7 billion in the year 2024-25, mostly from cheap oil buys that make up more than 40% of India's oil needs and save a lot of money.
8. BRICS countries, which cover over 45% of people on Earth and 28% of world money output, were told to show how to have an open, welcoming, and rule-following trade system.

Explained

Global Trade Context

Trade means buying and selling goods between countries, and it should follow simple rules set by groups like the World Trade Organization (WTO). The WTO says trade should be fair, without favoring one side, and help poorer countries with special help. But lately, some big countries like the US are adding extra rules based on politics, not just business. For example, the US started a 50% tax on Indian goods from August 27, 2025, and added 25% more because India buys oil from Russia. This is to push India to stop dealing with Russia over the Ukraine issue. Such mixes make trade unpredictable and can hurt jobs and prices in places like India.

India's Stance on Russian Oil

India needs a lot of oil to run its cars, factories, and homes, and it buys from many places to keep costs low. Since 2022, when fights started in Ukraine, Russia sells oil cheaper because many Western countries stopped buying. India stepped up and now gets over 40% of its oil from Russia, saving about $10-15 billion each year. Even after US taxes, India's leaders say they will keep buying because it helps keep fuel prices steady at home. In June 2025 alone, India bought $4.74 billion worth from Russia, while selling only $316 million back, showing a big gap but also how important this is for energy safety.

BRICS Background

BRICS started as an idea in 2001 when an expert named Jim O'Neill talked about fast-growing countries: Brazil, Russia, India, and China (BRIC). They held their first meeting in 2009 in Russia to work together on money matters and make the world fairer, not just run by rich nations. South Africa joined in 2010, making it BRICS. In 2024, at a meeting in South Africa, they added Egypt, Ethiopia, Iran, and the United Arab Emirates as full members from January 2024. Saudi Arabia got an invite but hasn't joined yet, and Indonesia is thinking about it. Now, BRICS has nine countries, home to 3.5 billion people and over $28 trillion in total money value. They have their own bank called the New Development Bank in China, which has given over $30 billion for roads, power, and green projects to help poor countries without strict rules from places like the World Bank.

Implications for Global South

The Global South means growing countries in Asia, Africa, and Latin America that face issues like poor access to food and energy. Fights in Ukraine and the Middle East have made these worse by raising prices. Jaishankar said BRICS can help by making shorter supply lines—meaning making things closer to home—so shocks like pandemics or wars don't hit hard. For India, this fits with plans like "Make in India" to build more at home. But US taxes could cost India $5-7 billion in sales to America each year, hurting areas like medicines and clothes. India has a $30 billion extra in trade with the US but a $100 billion shortfall with China, so BRICS talks aim to balance this. Overall, this shows how politics and trade mix can slow down world growth, and groups like BRICS try to give voice to non-Western countries.

Strategic Importance for India

India uses BRICS to stay independent in world affairs, not picking sides fully with the US or others. While part of groups like Quad with the US, Japan, and Australia for sea safety, India keeps strong ties with Russia for defense and energy. Trade with Russia jumped from $12 billion in 2021-22 to $68.7 billion now, and both aim for $100 billion soon. This helps India save money and grow, but risks more US pressure or even Europe joining in. Jaishankar's words push for rules-based trade without politics, helping India protect its growth path toward being a big economy by 2047.

MCQ Facts

Mains Question