diff --git a/package/gcc/gcc.mk b/package/gcc/gcc.mk
index 93bc46643c..94935d79a2 100644
--- a/package/gcc/gcc.mk
+++ b/package/gcc/gcc.mk
@@ -98,23 +98,24 @@ HOST_GCC_COMMON_CONF_ENV = \
 HOST_GCC_COMMON_MAKE_OPTS = \
 	gcc_cv_prog_makeinfo_modern=no
 
-GCC_COMMON_TARGET_CFLAGS = $(TARGET_CFLAGS)
-GCC_COMMON_TARGET_CXXFLAGS = $(TARGET_CXXFLAGS)
+# Target binaries and libraries which are being built as a part of GCC
+# don't use Buildroot toolchain wrapper because, instead its very own "xgcc"
+# binary is used. And so we need to explicitly propagate ALL the flags
+# directly to "xgcc" and that is done via configure-time environment
+# variables, see below setup of HOST_GCC_COMMON_CONF_ENV.
+GCC_COMMON_TARGET_CFLAGS = $(TARGET_CFLAGS) $(ARCH_TOOLCHAIN_WRAPPER_OPTS)
+GCC_COMMON_TARGET_CXXFLAGS = $(TARGET_CXXFLAGS) $(ARCH_TOOLCHAIN_WRAPPER_OPTS)
+GCC_COMMON_TARGET_LDFLAGS = $(TARGET_LDFLAGS) $(ARCH_TOOLCHAIN_WRAPPER_OPTS)
 
 # used to fix ../../../../libsanitizer/libbacktrace/../../libbacktrace/elf.c:772:21: error: 'st.st_mode' may be used uninitialized in this function [-Werror=maybe-uninitialized]
 ifeq ($(BR2_ENABLE_DEBUG),y)
 GCC_COMMON_TARGET_CFLAGS += -Wno-error
 endif
 
-# Make sure libgcc & libstdc++ always get built with -matomic on ARC700
-ifeq ($(GCC_TARGET_CPU):$(BR2_ARC_ATOMIC_EXT),arc700:y)
-GCC_COMMON_TARGET_CFLAGS += -matomic
-GCC_COMMON_TARGET_CXXFLAGS += -matomic
-endif
-
 # Propagate options used for target software building to GCC target libs
 HOST_GCC_COMMON_CONF_ENV += CFLAGS_FOR_TARGET="$(GCC_COMMON_TARGET_CFLAGS)"
 HOST_GCC_COMMON_CONF_ENV += CXXFLAGS_FOR_TARGET="$(GCC_COMMON_TARGET_CXXFLAGS)"
+HOST_GCC_COMMON_CONF_ENV += LDFLAGS_FOR_TARGET="$(GCC_COMMON_TARGET_LDFLAGS)"
 HOST_GCC_COMMON_CONF_ENV += AR_FOR_TARGET=gcc-ar NM_FOR_TARGET=gcc-nm RANLIB_FOR_TARGET=gcc-ranlib
 
 # libitm needs sparc V9+