Trump’s Global Tariff Strategy Targets India and Strengthens EU Ties

U.S. President Donald Trump has announced that products from India will be subject to a 25% tariff starting next August 1st, in addition to a fine on the country, the details of which have not yet been specified.

The United States maintains a “massive trade deficit with India”, as stated by Trump. The president has added that historically little business has been done with India because of its overly high tariffs and because “they have the most severe and disruptive non-monetary trade barriers of any country.“

He has further announced that this move is a counterattack against the fact that India “has always bought the vast majority of its military equipment from Russia and they are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the carnage in Ukraine.“

Trump finalized a 15% trade deal with the EU last Sunday

This statement comes just four days after reaching a trade deal with the EU to resolve their tariff dispute, introducing a 15% tariff and committing the EU to new investment, energy and arms purchases.

The President of the European Commission, Ursula von der Leyen, also confirmed the agreement with the United States on “zero-for-zero tariffs” in other areas: aeronautics, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and essential raw materials.

In mid-July, Trump announced the sending of a payment notice to more than 150 countries indicating the tariff rate, which would be the same for all: between 10% and 15%, and with a deadline for setting them on August 1st, extending the initial deadline of July 9th.