Trump tariffs: India's 25% surge nears deadline

Trump's Tariff Measures and Global Reactions

Many of Donald Trump’s tariffs are set to take effect on Thursday, with varying rates being imposed on different countries. The U.S. president has announced that India will face an additional 25% tariff on its imports to the U.S., bringing the total rate to 50%. This move is attributed to India's continued purchase of Russian oil. New Delhi has called the action "unfair, unjustified, and unreasonable."

Brazil Files WTO Consultations Over U.S. Tariffs

Brazil has taken the first step in a dispute settlement system within the World Trade Organization (WTO) over U.S. President Trump's hefty tariffs on the country. In its request, Brazil claimed the U.S. "flagrantly violates core commitments made to the WTO" by imposing these tariffs. The Brazilian government reiterated its willingness to negotiate and hopes that the consultations will contribute to a solution to the issue.

The dispute settlement system has been stalled since Trump's first term in office. The U.S. president slapped Latin America's biggest economy with a hefty 50% tariff on over a third of Brazilian exports to the U.S. This massive tariff rate comes in response to what Trump has called a "witch hunt" against his far-right ally Jair Bolsonaro, who is on trial for plotting a coup following his 2022 election loss.

Impact of India and China Stopping Russian Oil Purchases

Donald Trump is tightening sanctions loopholes that fund Moscow's war machine. What does a crackdown on Russia's oil trade mean for global markets — and economic heavyweights like China and India?

Recovery of U.S.-India Ties Amid Tariffs

U.S. President Donald Trump's pressure on India to halt its oil imports from Russia and comply with sanctions on Iran has strained ties between Washington and New Delhi, which have enjoyed a healthy strategic partnership for decades. India has already stated that it sees the tariffs as "unjustified and unreasonable" and that it would take "all necessary measures" to safeguard its "national interests and economic security."

Trump has claimed Indian authorities "don't care how many people in Ukraine are being killed by the Russian War Machine" and are helping fund Russia's war effort in Ukraine through their purchases of Russian oil. The tougher rhetoric marks a shift in relations between India and the U.S., despite recent displays of personal warmth and symbolic friendship when Prime Minister Narendra Modi met with President Trump earlier this year in Washington.

Experts believe that despite Trump's "intimidatory" approach, India "does not seek a confrontation."

Swiss President Hails Meeting with Rubio Ahead of Steep Tariffs

Swiss President Karin Keller-Sutter said she had a "very good meeting" with U.S. Secretary of State Marco Rubio on Wednesday, discussing the incoming U.S. tariffs on Switzerland. In the meeting, the pair discussed bilateral cooperation between Switzerland and the U.S., and the tariff situation, and international issues. Despite the friendly exchange, Keller-Sutter did not mention whether it would help the country avert the 39% tariff set to come into effect on Thursday.

A U.S. State Department spokeswoman said the talks included "the importance of a fair and balanced trade relationship that benefits the American people."

Which Tariffs Are Going Into Effect on August 7?

On July 31, Trump announced a new set of "reciprocal tariffs," affecting some 67 countries. The levies, due to kick in on August 7, include a 10% so-called baseline tariff on countries where the U.S. sells more products than it imports. The U.S. president argued in a White House statement that "conditions reflected in large and persistent annual U.S. goods trade deficits constitute an unusual and extraordinary threat to the national security and economy of the U.S. that has its source in whole or substantial part outside the U.S."

Leading trading partners including the European Union, Japan, and South Korea will be subject to a 15% tariff. All are engaged in trade negotiations with Washington. Countries that reached tentative trade agreements with the U.S., such as the Philippines, Vietnam, and Indonesia, will be subject to tariffs ranging from 19% to 20%. Much higher rates will fall on smaller economies such as Syria (41%, the highest on the list), Myanmar (40%), which is still grappling with a civil war, Laos (40%), and Iraq (35%). Despite being a significant trading partner, Switzerland is set to face a 39% tariff.

Implications for India

The latest tariff announcement means India is facing the highest U.S. levy along with Brazil. This could put New Delhi at a significant disadvantage, particularly against regional competitors such as Vietnam and Bangladesh. The move could also shatter India's image as an alternative for U.S. companies to Chinese manufacturing.

Trump had already criticized tech giant Apple for its efforts to shift iPhone production to India to avoid the tariffs that had been planned for China. However, smartphones are on a list of exempted products for now, shielding Apple from a major hit, even as it moves production from China to India. On Wednesday, Trump is expected to celebrate a commitment by Apple to increase its U.S. investments by an additional $100 billion over the next four years.

Other exemptions include goods targeted under sector-specific tariffs such as steel and aluminum, and sectors that could be hit later, such as pharmaceuticals and semiconductors.

India's Response to the Latest Tariff Announcement

India's government spokesperson defended New Delhi's purchase of Russian oil, stating that "imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India." It added that it is extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.

"We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests."

Timeline of Trump's Tariffs

U.S. President Donald Trump promised in his inaugural address this year to "tariff and tax foreign countries to enrich our citizens." By setting new tariff rates, Trump aimed at reducing the country's trade deficit, which is when the U.S. imports more from a country than it exports to that country, and first announced plans for a "reciprocal" tariff on February 13.

But experts have warned that tariffs could cause chaos for global markets and disrupt the U.S. economy at home. The timeline so far includes key events such as April 2, when Trump announced long-promised "reciprocal" tariffs, declaring a 10% baseline tax on imports across the board starting April 5, as well as higher rates for dozens of countries that have a high trade deficit with the U.S. The calculations for the tariff rates caused widespread confusion.

April 5 marked the start of Trump's 10% minimum tariff on nearly all countries and territories. April 9 saw Trump's higher "reciprocal" rate go into effect, but his administration paused higher rates while maintaining the 10% levy on most global imports. April 10 saw the EU suspending its steel and aluminum tariff retaliation measures for 90 days in response to Trump's 25% tariffs on imported steel and aluminum that took effect in March.

May 23 saw Trump threatening a 50% tax on all imports from the EU as well as a 25% tariff on smartphones unless those products are made in America. May 26 brought a delay in the implementation of a 50% tariff on goods from the EU from June 1 until July 9 to buy time for negotiations with the bloc.

July 7 saw Trump signing an executive order to push the deadline for higher tariffs to August 1 and sending his first letters telling 14 countries' leaders that their exports to the U.S. would face a new tariff rate. July 8 marked Trump's insistence that the August 1 deadline is the final one. July 9 brought more letters, hitting Brazil with a 50% tariff rate. Brazil's President Luiz Inacio Lula da Silva promised to reciprocate.

July 12 saw Trump announcing a 35% tariff on Canadian goods, claiming Canada had "financially retaliated" to earlier duties. He said the EU would receive a similar letter soon. July 13 brought Trump announcing a 30% tariff rate on the EU and Mexico, telling both that "whatever the number you choose to raise them by, will be added on to the 30% that we charge."

July 31 saw Trump signing an executive order delaying the tariff deadline for the EU and other partners from August 1 to August 7. August 6 marked Trump announcing a further 25% tariff rate on India's imports due to their purchase of Russian oil, bringing the total to 50%.

Trump Hits India With Added 25% Tariff Over Russian Oil

U.S. President Donald Trump said Wednesday he signed an executive order to impose an additional 25% tariff on India. He cited India's continued purchase of Russian oil. The order comes just a day before a separate 25% tariff on Indian goods was due to take effect. The latest decision is set to come into force in three weeks.

Trump had threatened allies of Russia to stop importing oil from Moscow or face high tariffs. Ties between the U.S. and India have taken a downturn as they failed to reach a trade agreement to avert Trump's tariffs.

Welcome to our coverage. U.S. President Trump's tariffs on the EU and other trading partners are set to finally come into effect on Friday, following numerous delays since his first "Liberation Day" announcement back in April. The tariff threats have triggered widespread uncertainty and concerns about the impact on the global economy. Countries facing heavy tariff rates have sought to make deals with the Trump administration, but have also threatened to impose their own counter tariffs. Stick with our Trump tariffs blog for the latest updates, analysis, and explainers.