Tariffs, CBAM, unilateral sanctions: The big takeaways from BRICS summit

The 18th BRICS Summit held in New Delhi on Saturday has put trade, climate-linked tariffs, global financial institutions and economic cooperation at the centre of its agenda. In its New Delhi Declaration, the 11-member grouping criticised unilateral tariffs and other trade restrictions, opposed carbon border taxes such as the European Union's Carbon Border Adjustment Mechanism (CBAM), and called for reforms to the World Trade Organization (WTO), International Monetary Fund (IMF) and World Bank.

BRICS countries has also agreed to deepen cooperation in areas ranging from critical minerals and supply chains to artificial intelligence, education, transport, food security and energy.

Here are the key decisions and what they mean.

1. BRICS takes aim at unilateral tariffs
The leaders warned that rising tariffs and non-tariff barriers could reduce global trade, disrupt supply chains and increase uncertainty for businesses.

Although the declaration does not name any country, the criticism comes at a time when the US has significantly expanded the use of tariffs under President Donald Trump.

Why does this matter?
BRICS includes major exporters such as China and India as well as resource-rich economies. Higher tariffs can make their products more expensive in overseas markets and disrupt established supply chains.

The bloc is therefore calling for a trade system that is open, predictable, fair and non-discriminatory, and one that is based on WTO rules while giving developing economies a greater voice.

2. Why is BRICS opposing carbon border taxes?
For the first time, the BRICS declaration explicitly targets Carbon Border Adjustment Mechanisms, or CBAMs.

The bloc described such measures as potentially "unilateral, punitive, discriminatory and protectionist" when they are not consistent with international law.

What is CBAM?
A carbon border adjustment is essentially a carbon-related charge on certain imported goods based on the emissions generated during their production.

The European Union's CBAM covers sectors such as steel and iron, aluminium, cement, fertilisers, electricity and hydrogen.

The EU's stated objective is to prevent carbon leakage — a situation where companies shift production to countries with weaker climate regulations to avoid carbon costs.

Why are developing countries worried?
Many BRICS economies are still industrialising and depend heavily on carbon-intensive industries.

They argue that carbon border taxes could increase the cost of their exports and make their products less competitive in overseas markets. BRICS also argues that developing countries often lack the finance and technology required for a rapid transition to cleaner production.

The declaration therefore says such measures could undermine developing countries' efforts to adapt to climate change.

3. BRICS wants the WTO dispute system restored
BRICS reaffirmed its support for a rules-based global trading system with the WTO at its centre.

But it also called for the immediate restoration of the WTO's two-tier dispute settlement mechanism.

The WTO's dispute settlement system allows countries to challenge trade measures they believe violate international trade rules.

Its Appellate Body, however, has been effectively paralysed since 2019 after the US blocked the appointment of new members. BRICS wants the system restored and new Appellate Body members appointed. The bloc also supported the WTO accession bids of Ethiopia and Iran.

4. A bigger voice for emerging economies at the IMF and World Bank
BRICS also renewed its call for reforms to the institutions created under the post-World War II financial system — particularly the IMF and World Bank.

The bloc wants these institutions to become more representative of today's global economy.

It called for greater representation for emerging and developing economies, implementation of the IMF's 16th General Review of Quotas and progress on the 17th quota review, which would realign voting shares towards emerging and developing economies.

BRICS also argued that voluntary financial contributions should not translate into greater voting power or influence over IMF governance.

Countries such as India, China and Brazil have much greater economic weight today than they did when the Bretton Woods institutions were created.

BRICS believes their representation in global financial decision-making should reflect that change.

5. Critical minerals: securing resources for the energy transition
BRICS called for reliable, diversified and resilient supply chains for critical minerals. These minerals are essential for electric vehicles, batteries, renewable energy and other advanced technologies.

At the same time, members stressed that resource-rich countries should retain sovereign control over their mineral resources.

This is significant because competition for minerals such as lithium, cobalt and rare earth elements is intensifying as countries shift towards cleaner technologies.

The BRICS approach is essentially to promote greater cooperation on critical minerals while ensuring that countries possessing these resources retain control over them.

6. Moving up the global value chain
BRICS does not want developing countries to remain primarily exporters of raw materials or low-value manufactured goods.

The declaration supports a BRICS Global Value Chain Action Plan for 2026-2030, aimed at helping developing and emerging economies participate in higher-value segments of global manufacturing.

The bloc also wants greater use of Special Economic Zones, technology transfer, industrial cooperation, digital trade documentation and improved connectivity and trade facilitation.

Why does this matter?
Instead of simply exporting iron ore, for example, countries want to capture more value by processing the resource and manufacturing finished products.

That could create more jobs, investment and technological capacity within developing economies.

7. Food and energy security
BRICS kept alive the proposal for a BRICS Grain Exchange, which could eventually be expanded to other agricultural commodities.

The idea is to strengthen cooperation among member countries in food trade and improve resilience against supply disruptions.

On energy, BRICS backed a "just, orderly, equitable and inclusive" energy transition.

Importantly, the declaration does not seek to eliminate fossil fuels immediately. It recognises the continuing role of fossil fuels, particularly for developing economies, while supporting cooperation in areas such as smart grids, hydrogen, renewable energy and protection of critical energy infrastructure.

8. Artificial intelligence enters the BRICS economic agenda
BRICS leaders stressed the need to protect intellectual property rights in the digital environment, including material used for AI training, while also recognising the need for fair remuneration of rights holders.

They also flagged concerns about the misappropriation or misrepresentation of traditional knowledge and cultural heritage in AI datasets and models.

This is significant because the question of who owns and should be compensated for material used to train AI systems is becoming a major global policy issue.

They also backed cooperation in digital literacy, early childhood education, foundational literacy and numeracy, mutual recognition of qualifications, academic mobility, STEM education and skill development. The bloc will also explore the development of a BRICS University Global Ranking and Evaluation System.

9. Transport and greener aviation
They backed greater cooperation on sustainable aviation fuels and low-carbon aviation fuels to reduce emissions from international aviation.

The summit also welcomed the BRICS Logistics Supply-Chain Cooperation Framework, the BRICS Urban Mobility Hub and a framework for transport decarbonisation. It will also continue discussions on a BRICS Railway Research Network.

10. BRICS rejects unilateral sanctions
The BRICS declaration also strongly criticised unilateral economic sanctions and secondary sanctions.

BRICS argued that such measures can have consequences for ordinary people, particularly through their effects on food security, health and development.

The issue is particularly important for countries such as Russia and Iran, which face extensive Western sanctions.

It also connects to BRICS' broader efforts to strengthen financial cooperation and reduce vulnerability to external sanctions.

So, what is the bigger message from the summit?
The New Delhi Declaration is essentially about changing how the global economy is governed. BRICS is pushing for three broad changes.

First, it wants to move from unilateral action towards multilateral rules. The bloc wants tariffs, sanctions and trade disputes to be dealt with through international institutions and agreed rules.

Second, it wants greater representation for emerging and developing economies. Whether it is the WTO, IMF or World Bank, BRICS wants these countries to have a bigger say in global economic decision-making.

Third, it wants developing countries to move from commodity exports and low-value manufacturing towards higher-value economic activity. Through critical-mineral cooperation, global value chains, technology transfer, MSME finance and industrial cooperation, BRICS wants developing countries to capture a larger share of the value generated by global trade.