4 days ago
Trump hikes India levy over Russian oil as tariff deadline looms
US President Donald Mr Trump has ordered steeper tariffs on Indian goods over the Asian country's continued purchase of Russian oil, opening a new front in his trade wars hours before another wave of duties takes effect.
The additional 25% tariff on Indian goods, coming into place in three weeks, stacks atop a separate 25% duty entering into force, taking the level to 50% for many products.
Mr Trump's order also threatens penalties on other countries who "directly or indirectly" import Russian oil, a key revenue source for Russia's war in Ukraine.
Exemptions remain however for goods targeted under sector-specific duties such as steel and aluminum, and categories that could be hit later, like pharmaceuticals and semiconductors.
Smartphones are in this list of exempted products for now, shielding Apple from a major hit as the US tech titan shifts production from China to India.
India's foreign ministry condemned Mr Trump's announcement, calling the move "unfair, unjustified and unreasonable."
The ministry previously said India began importing oil from Russia as traditional supplies were diverted to Europe over the war - noting that Washington had "actively encouraged" such imports to strengthen "global energy market stability."
However, Mr Trump recently raised pressure on India over the oil purchases, threatening new tariffs as part of a campaign to force Moscow into ending its devastating invasion of Ukraine.
India's national security adviser was in Russia, media ii reported, coinciding with US envoy Steve Witkoff's visit.
The 25% additional tariff is lower than the 100% Mr Trump floated last month when he told Russia to end the war in Ukraine within 50 days or face massive new economic sanctions.
The Republican said at the time that these would be "secondary tariffs" targeting Russia's remaining trade partners, seeking to impede Moscow's ability to survive already sweeping Western sanctions.
Tariff turmoil
Mr Trump has separately taken aim at Brazil over the trial of his right-wing ally, former president Jair Bolsonaro - who is accused of planning a coup.
US tariffs on various Brazilian goods surged from 10% to 50%, although broad exemptions including for orange juice and civil aircraft are expected to soften the blow.
A new wave of tariffs impacting dozens of other economies, from the European Union to Taiwan, is set to kick in later today.
These updated "reciprocal" tariffs, meant to address trade practices Washington deems unfair, go up to 41% for Syria
US trading partners face varying increases from a current 10% level, starting at 15% for economies like the EU, Japan and South Korea.
Countries not targeted by these "reciprocal" tariff hikes continue facing a 10% levy Mr Trump imposed in April.
Mr Trump's plans have sparked a rush to avert steeper duties, with Switzerland's President Karin Keller-Sutter hurrying to the US ahead of the deadline. It was unclear if she would meet Mr Trump or any top economic officials.
While Switzerland's key pharmaceutical sector has been spared from the incoming 39% duty for now, Mr Trump has warned that future pharma tariffs could eventually rise to 250%.
Many of Mr Trump's sweeping tariffs also face legal challenges over his use of emergency economic powers, with the cases likely to ultimately reach the Supreme Court.
Tokyo's tariffs envoy Ryosei Akazawa was also in Washington, pressing for clarity on when promised cuts to tariffs on Japan's auto imports from 25% to 15% would take effect.
A US official said meanwhile that, unlike for the European Union, tariffs on other Japanese imports would not be capped at 15% but that these "reciprocal" levies would be added to existing ones.
Japan averted threatened extra tariffs of 25% in a deal struck in July, but the two sides appear at odds over key details, including over Japanese investments of $550 billion into the United States.
"It's our money to invest as we like."
