President Donald Trump’s threat to impose new tariffs on India over its participation in the BRICS forum puts New Delhi in a tough position as it races to finalize a favorable trade deal with the US.

The remarks came just a day after the US leader said he was close to finalizing a trade deal that New Delhi hopes would give it reprieve from 26 per cent reciprocal tariffs

President Trump accused the BRICS alliance of aiming to undermine the US dollar, warning that member countries would face a 10% tariff. He downplayed the bloc's threat, asserting the dollar's dominance and stating that any challenges would come at a high cost.