Trump ups tariffs on India to 50 percent for buying Russian oil. 
Do As I Say or Get Punished
Bloomberg reports Trump Doubles India Tariff to 50% to Punish Russian Oil Buying
Key Takeaways
- US President Donald Trump imposed an additional 25% tariff on Indian goods over its purchases of Russian energy.
- Trump’s move came after talks between Washington and Moscow over the war in Ukraine failed to yield an immediate breakthrough, with Indian Prime Minister Narendra Modi saying his nation is being unreasonably targeted by the US.
- A spokesperson for India’s Ministry of External Affairs called Trump’s announcement “unfair, unjustified and unreasonable” and vowed the government “will take all actions necessary to protect its national interests.”
Trump signed an executive order setting the new rate, the White House said Wednesday, which will stack on top of a 25% levy on Indian imports Trump announced last week. The higher duty will take effect within 21 days, according to the order.
“They’re fueling the war machine. And if they’re going to do that, then I’m not going to be happy,” Trump said Tuesday in a CNBC interview.
A spokesperson for India’s Ministry of External Affairs on Wednesday called Trump’s announcement “unfair, unjustified and unreasonable” and vowed the government “will take all actions necessary to protect its national interests.”
Levies on imports from dozens of US trading partners are set to increase starting Thursday, including those from India, which will face the prior 25% charge. They’re the centerpiece of Trump’s effort to shrink trade deficits, revive domestic manufacturing and collect revenue for the federal government. The tariffs also carry risks for the global economy, including the prospect of higher costs and broken supply chains.
Trump’s tariff threats have crashed headlong into the US’s longstanding objective of cultivating India, the world’s most populous nation, as a geopolitical counterweight to China. It’s a turnabout from Trump’s first term, when he shared a warm relationship with Modi.
The US president has ramped up attacks against India in recent days, calling its economy “dead,” its tariff barriers “obnoxious” and its people indifferent to the plight of Ukrainians. Indian officials have also bristled at how Trump has characterized his role in helping to resolve the India-Pakistan conflict earlier this year.
Ahead of the talks, Trump suggested he would impose increased levies on other countries, including China, that like India buy energy from Russia.
“We’ll be doing quite a bit of that,” Trump told reporters. “We’ll see what happens over the next fairly short period of time.”
Question of the Day
Dear Mr. President, is it OK if I pee?
China won’t put up with this s* so we will see about Trump’s threat on China.
If Trump follows through, look for China to block rare earth exports in about one second flat.
Imagine the Howls
Imagine the howls had Biden done the same to India. Mercy.
If Trump wants to deal with Russia, might I suggest doing so directly instead of forcing the world to do his work for him?
At a tariff rate of 50 percent, we are close to the point most trade with India will shut down.
India’s Deficit
The lead chart shows a trade deficit acceleration with India starting in 2020.
The same thing happened with Vietnam, Taiwan, and Mexico as the trade deficit with China allegedly stabilized.
US Balance of Trade Select Countries
Tariff avoidance by China is in play. It is uncertain what role India plays.
Trade With India by Sector
The above chart is a bit stale but instructive. The overall numbers match my lead chart.
Much trade is back-and-forth goods processing, for example, stone, glass, and metals.
However, textiles, footwear, and headgear aren’t. Those categories provide much headroom for tariff avoidance from China.
The US has a legitimate gripe with India on agricultural goods. But some of that is due to religious reasons.
In contrast, oils, minerals, lime and cement are primarily US exports. I am sure India can easily get those elsewhere. Hello China.
The US Trade Deficit with China is Understated by as Much as 30 Percent
On January 18, I noted The US Trade Deficit with China is Understated by as Much as 30 Percent
Normal trade math does not add up. US imports and China exports are not in sync.
It’s highly likely that India is involved in China’s tariff avoidance.
What About Services?
The Economic Times reports US enjoys $35-40 bn surplus with India if services, arms, royalties included.
The US, despite reporting a USD 44.4 billion trade deficit with India, runs a USD 35-40 billion overall surplus when revenues from education, digital services, financial activities, royalties, and arms trade are factored in, economic think tank GTRI said on Monday. It said for India, this means it has every reason to walk into free trade agreement negotiations with confidence, pushing back hard against inflated deficit claims and demanding fair, balanced terms that reflect the full economic relationship, not just a narrow, cherry-picked slice of the ledger.
“But this trade deficit narrative is misleading and incomplete,” GTRI Founder Ajay Srivastava said, adding that according to the think tank, the US quietly rakes in USD 80-85 billion every year from India through education, digital services, financial operations, intellectual property royalties, and arms sales.
“These massive earnings do not show up in the narrow goods trade statistics. When you factor them in, the US isn’t running a deficit with India at all – it’s sitting on a USD 35-40 billion surplus,” he said.
In contrast, the US claims a mere services surplus of around $102 million.
If we assume the answer is somewhere in the middle, The US has a mostly balanced trade relationship with India.
If Trump can crack get India to crack down on tariff avoidance by China and properly factors in services, Trump has no gripe with India other than agricultural which India won’t fix on religious grounds.
But Trump does not care about services (only goods). Nor does he care about the Sacred Cow or any other religious issues.
To put it succinctly, Trump does not care about anything other than his idiotic definition of reciprocal tariffs and getting the world to bow down to his every wish.
Related Posts
August 3, 2025: Switzerland Gets a Big Slap in the Face from Trump’s Tariffs
Swiss business leaders don’t understand what happened. I do.
August 3, 2025: Trump Puts 93.5 Percent Tariff on Graphite Needed for EV Batteries
Here’s another shoot yourself in the foot tariff move by Trump.
August 4, 2025: China Again Chokes Off Critical Rare Earths Needed for Defense
Trump threatened China with tariffs for doing business with Russia. Guess what?
If these countries were run by normal people, they’d never acquiesce to do business with America.
But unfortunately the same (((people))) that rule the US also dominate the populations of Europe, İndia, Switzerland, and the rest.
Tariffs are a ridiculous proposition that no normal self-respecting country would accept. But here we are, with the planet bending the knee to their (((masters))).
This is what you want, this is what you get.
You have to be an inveterate idiot to produce and ship valuable goods and services to America in return for worthless digits dancing on some foreign banker’s computer screen. Real stuff for unknown electrons. What a deal.
What a race of morons.
Canada, India, China, Brazil, Russia, Japan, Vietnam, Australia and the EU should all tell Trump to pound sand.
The sooner they do it, the sooner he fails.
>
And Mexico too….
Everyday I’m thankful I’m old. What a st show!
I fail to understand why the Dems in Congress are not raising hay about Trump usurping their power to control tariffs.
Sure, the Pubs will ignore them but they can be getting a lot of press and hold the Congress leaders feet to the fire.
Instead, they and their MSM proxies (CNN, MSNBC, etc.) are spending huge amounts of their time on dead guy Epstein. What a waste! And why they may be setting themselves up for a rare mid-term loss where the other party often takes back control.
Sure as fish swim, Trump and some of his biggest pals flew Epstein Express to the island and got serviced by younger girls.
Fine, add this to Trump’s already arms length list of crimes and improprieties. It isn’t going to change anything.
“emergency” tariffs ie reciprical are being challenged in courts since there is no obvious emergency. 232 which includes autotariff and steel/alum/copper is apparently unassailable for legal reasons i dont understand. of course congress can shut down all this nonsense whenever they want to.
You have faith in BIGOV after all the bombings and undeclared wars congress chose to ignore?
You know like that pier in Palestine.
“The US has a legitimate gripe with India on agricultural goods”
But the reason is India like almost all countries pegged its Currency to $ and the so called concessions are a quid pro quo.I remember when India pegged its Currency to $ from the British Pound,a sudden increase Indian immigrants to US,more and more US movies screened in India etc.
US cannot have the cake and eat it too.
But Trump’s policy will increase US’ Trade Surplus and hence a global shortage of $s Refer Triffin’s Dilemma/Paradox. This will force nations to use other means to meet their import obligations than $.That means,$ will cease to be the Reserve Currency.
Trump’s tariffs are fun to watch. Let’s look at aluminum. We have a tariff of 50% on all imported aluminum. Which makes our manufacturers that need aluminum very uncompetitive.
Trump wants to encourage more domestic aluminum production. He would like to reverse a 45 year decline where we went from 30 smelters to just 4. Why did that happen? Mostly because of high US electricity prices, high wages, and old facilities that were uncompetitive compared to others around the world. So we now import 50% of our aluminum.
Is it possible to increase US aluminum production? Yes. But it won’t be easy.
Aluminum is made using bauxite, or a slightly processed form of bauxite, called alumina. The US doesn’t have much bauxite, so we have to import 99% of the bauxite that our 4 smelters currently use. We would have to double our bauxite imports in order to make all the aluminum we need. We cannot provide it ourselves.
The countries that we import bauxite or alumina from are; China, Canada, Brazil, Australia, South Korea, and Jamaica. Of course, we have tariffs on all those countries, so we will have to pay more for bauxite/alumina than our competitors do.
The next problem is that 40+% of the cost of producing aluminum is the cost of electricity. And aluminum needs a crap load of electricity. One new smelter uses as much electricity as 6 AI data centers or a major city. We are currently struggling to find electricity for data centers, let alone new aluminum smelters.
The reason that so much aluminum is being produced in China, Australia, Canada and Iceland is because they have a lot of very cheap electricity. We do not.
As I mentioned recently; China added 477 GW of new electricity generation in 2024. The US: 38 GW. China could easily build more aluminum smelters because of that electricity. The US cannot. 38 GW can’t meet our existing demand growth, let alone data centers or aluminum smelters.
So, in order to produce all our aluminum we need companies willing to invest many billions over the next 10-20 years to build new aluminum smelters; arrange 30-50 year guaranteed electricity contracts at prices about 75% cheaper than current rates, or build their own new nuclear plants over the next 20 years (1 plant for each new smelter) and import enough bauxite from countries (that we are pissing off) at really good prices. Simple.
In the meantime, while we are completing that miracle over the next 20 years, we are hobbling our manufacturers with 50% tariffs on imported aluminum.
Welcome to the Golden Age.
At the moment the US does not have the Infrastructure needed. Huge Power is consumed by Data Centers alone. For re-industrialization Power alone will be a great problem, let alone the products’ being costly and unprofitable in the long run.
As I said yesterday. The Trump Doctrine – “Do as I say, or I will tax the shit out of my own citizens!” Thank you for your attention in this matter.
If I get a missive ending with “Thank you for your attention in this matter”, I assume that it’s a con by a Nigerian prince. Am I close?
Only if the Nigerian prince is also a pedophile.
WTF! Did the U.S. never really have laws and enter into treaties that disallow arbitrary and/or coercive tariffs, or are there laws and treaties that prevent such coercive actions, and everyone is afraid to enforce them? Again, WTF??
US is big Military Power.Add those Bjo-weapons in its many bases world-wide.
Does this mean that US will also stop importing Russian fertilizer, palladium, uranium, chemicals, precious metals and stones, and wood products? Because we are still buying those things from Russia, and many more.
Dude,
Do as Trump says, not as he does….
Agriculture and dairy is not a religious issue in India. It is a GMO, antibiotics and hormone injected dairy that is the issue.
Indian Prime Mister says he will NOT let down his farmers and small businesses.
India provides 40% of the generic medicines in the US. Even with higher tariffs, they’ll still be a lot cheaper than brand-name prices. Either way, India isn’t going to stop buying Russian gas & oil – nor is China.
When executive order goes abroad, it is called imperial edict. Naturally, only emperors issue edicts.
For laughs
A Texas deputy is learning the hard way that TikTok clout doesn’t mix well with police work—especially when your viral joke involves ticketing everyone because you “didn’t get cracked last night.”
The now-deleted video featured Harris County Precinct 5 Deputy Jennifer Escalera in full uniform, scribbling on a notepad, with the caption: “Didn’t get cracked last night so everyone is getting a ticket.” She blurred parts of her uniform but left her nametag clearly visible—because nothing says “low-profile investigation” like tagging yourself in your own controversy., according to the NY Post.
How is this free trade? It’s not. All Trump will do is push India and Russia closer to together, just as Russia and China are now partners. It’s free trade as long as the US approves. That’s going too far. It’s weaponizing trade.
Unfortunately, the Neocons have gotten to Trump; it’s a shame. I had hoped Trump would fight the Neocons and stay away from Ukraine. Now, the threat of world war is increasing. That’s three nuclear powers in partnership against the US.
India has already cancelled he purchase F35s and fighters for its Navy from US.Mr.Modi promised to buy F 35s in February when he visited US and met with Prez Trump,after the first salvo from the latter.
TACO=Bob Roberts.
Kelly Noble: Bob Roberts is yet another of that faction that lives to destroy whatever good came out of the 60s, to rewrite the history of that important period. A period where the American people actually were informed and aware, and realized that they had a voice. They demanded that a war end. Bob Roberts is Nixon, only he’s shrewder, more complicated, this Bob Roberts. Now here is a man who has adopted the persona and mindset of a free-thinking rebel and turned it on itself. The Rebel Conservative! That is deviant brilliance. What a Machiavellian poser.
I wonder when China will block TMSC exports to USA from its internationally recognized province of Taiwan.
That can’t happen.
But the threat is if Taiwan Semiconductor produces everything we need in the US, then Trump or whoever no longer cares if China takes it over
> That can’t happen.
Odds are against it but not impossible. Setting aside the extremely low-probability of a military blockade, I read that Beijing customs personnel work in Taiwan alongside Taipei customs personnel. I don’t know details. But if they work together now on some commerce, perhaps they can and would expand it — especially as Oceania continues escalating in Taiwan as they did in Ukraine.
> But the threat is if Taiwan Semiconductor produces everything we need in the US, then Trump or whoever no longer cares if China takes it over
It might be worse than “no longer care”. Look at the incentives.
First, once Oceania no longer needs output from factories in Eastasia, Oceania would prefer to remove that oversupply lest it benefit Eastasia.
Second, if Oceania thinks of a new use for its now-useless colony into something useful, won’t it at least try? And what would be more useful than building an even-greater military threat right on Oceania’s doorstep (use your imagination about weapons) to force Eastasia to invade and take the blame for “starting” a war and, in particular, destroying that very oversupply?
Yuck. Some horrible editing in the last par. Sorry.
Trump says he is putting 100% tariffs on semi-conductors and chips. Which will rise to 250% over time if they aren’t made in the USA.
There have been around 130 announcements since 2020 and promises of $450 billion in investments in US chip production. So far, not a single chip from these announcements. Just empty promises to appease Trump.
Golden Age here we come! Lol!
He has to crash NVDA because we’re all gushing profits and his cult is getting mad that they’re being left behind….
https://www.telegraph.co.uk/business/2025/08/06/donald-trump-inspired-wall-street-boom-redneck-recession/
Donald Trump claims America is “the hottest country anywhere in the world”. On Wall Street, there are plenty of signs that this is true. The value of artificial intelligence (AI) chipmaker Nvidia has just surpassed $4tn (£3tn), a first for any publicly traded company in the world. This single American firm is now worth more than the output of Germany’s entire economy in a year.
“Manufacturing is in recession. Construction is in a deep recession. Transportation and distribution is in recession. Wholesaling is in recession. Retail is holding on by its thumbs, it’s very close,” says Mark Zandi, chief economist at Moody’s Analytics. He believes that as much as a third of the US economy is already effectively in recession.
“The industries that are going to get nailed, they’re the kind of working class, low-to-middle income kind of job,” Zandi says.
You reap what you sow MAGA, only thing left now is for your messiah to crucify you for your insolence.
Trump is making tough on Russia for political appeasement reasons, meanwhile negotiating with Russia for his agenda. I doubt any of this will amount to much. New tariffs will ripple down to the consumer sooner than new mines and facilities could reasonably be built and the TACO handle will endure. So it is all another experiment.
At some point TACO will actually down a plate of TACO’s to mock everyone.
Only if McDonalds starts making them.
They would missed like the McRib if that ever happened.
I’m actually surprised they don’t
Once the fight stops the rest of Ukraine is US’.Like South Korea.US Corporations will have a field day.
Reason is – –
India is stabbing the US in the back with the BRICS dagger
Exactly right. Here is the latest status of U.S. economic warfare:
Brazil: We don’t like what you did to Balsonaro – tariffs for you!Russia: Removed Russian banks from SWIFT under Obama, also the G7 countries instituted a $60/barrel price cap, now the likely target of ‘extreme’ additional sanctions that will probably be just as ineffectiveIndia: Receives Russian oil and resells it internationally for a tidy profit – tariffs for you!China: Same as India except that I don’t think they resell itSouth Africa: Nothing special yet, but if special targeted action against SA is next you’ll know why.The effect of these targeted tariff actions is to drive these major economies more strongly into each others arms. Instead of BRICS, I have been using a different term: Anti-NATO. For the well-read, other options could be Oceania, Eurasia, and Eastasia.
Lizard people from the Antarctic?
The MOLE PEOPLE rule the Antarctic. Easy mistake to make.
HUH! You have never seen the Mole people from the Fantastic Four nor the Tick!
Forgot Invincible.
The only Tick I acknowledge hangs out with Lady Liberty and BatManuel
US can’t do anything to stop this de- dollarization process. Its very clear starting with China – Russia trading without USD and many more.
Hahaha, switch to STABLECOIN!
Really does know one pay attention?
At least two of you don’t pay attention to the coin bait and switch happening now.
The $US reserve currency status is a ball and chain for Trump’s agenda. He is actively frustrating most countries that use the dollar and the switch away is being hastened by Trump policy. Trouble is he can’t risk a loss of confindence in the dollar that will trigger the mother of all financial crises.
But we poison them with E waste and the Vance marriage so evensies.
The US cannot enjoy having $ as the Reserve Currency and its huge advantages and give nothing in return The US Trade Deficit was a deliberate choice in the 1980s- to supply $s to the World and the G7 was involved, The plaza Accord, if I am correct.
See GM will Die Soon, and they deserve it
GM Will Die Soon. They Deserve It. (Engineer explains why)
So another bailout?
GM transferred all of their intellectual property / engineering to china
They actually have something to transfer?
To put it more succinctly, Trump’s dream seems to be to turn the United States into North Korea where he decides what the BLS data is, sets the rates for banks, decides who trades and doesn’t but really prefers to seal the borders of the US and have it become it’s own self-contained system with him as king dictator.
We all know how well central planning has worked out for North Korea, Cuba and Venezuela but that’s exactly what’s he’s doing and the slow and dimwitted cult eats it up.
And the really dumb ones say why leave or have an exit strategy or there aren’t better places to go to – what an insane group of brainwashed nitwits. You all really deserve to reap what you sow.
“And the really dumb ones say why leave or have an exit strategy or there aren’t better places to go to – what an insane group of brainwashed nitwits. You all really deserve to reap what you sow.”
I would gladly go anywhere that acknowledges the benefits of Baksheesh. I hear that Thai cops love the cash in pocket.
On the other hand it only takes a single person or small group to do true harm.
Israeli’s and Americans should be scared to go anywhere.
I remember when the GOP used to be the champions of free trade and enterprise. TOD, Jan 20, 2017
I remember Abbie Hoffman and the Yippies getting a permit to exorcise the Pentagon.
I for one can’t remember that.
I’ve noticed a lot more stuff ‘made in India’ the last few years, likely because of the tariffs on China.
Will the tariffs apply to U.S. businesses using Indian call centers?
It is not stuff. Lot’s of made in India stuff was around in the 80 – 90’s.
You need to watch media, film and tv, to see the Indian(East Asian) nudge the US is getting.
Brits already had it.
Now East Asians are replacing Blacks and Hispanics as the go to group with barely a Chinese anywhere.
Take that stupid show set in Cali where two COLLEGE professors and researchers lived in a crappy apartment. No Blacks, no CHINESE, A Jew engineer, and an EAST ASIAN Astronomer all palling around.
Clearly all four were, you know, but one of the roomies lands a HOT blonde and she pretends it is NOT for his money.
Cali University Physicists and not a single CHINESE in their group
The audience never ever questioned that.
Forgot the East Asian woman that married the Gay child brothers band member.
Then they popped her right on an Amazon film.
You know the boy band that South Park made fun of, the fire extinguisher thing on preteen girls.
Jonas brothers, the Gay one played Gay on Scream Queens and Kingdom ( the awesome MMA family show some of the best television in decades everyone acted like they had no mental limits. Great cast and not a single bad episode.)
Probably a five year Tom Cruise marriage contract.
Top Gun was one of the Gayest films made just read Tarantino’s quote on it.
Brilliant.
Eisenhower warned the Russians not to cross the Danube with armored divisions during the Hungarian uprising, assuring them that if they did it would be WW3. JFK implemented a full blockade on Cuba and sent an entire bomber group towards Cuba while addressing America during the Cuban Missile Crisis. I’d say this action pales in escalation but may be ever as effective. I agree with Mish on just about everything Trump does transactionally, however, this isn’t one of them. Over 1M casualties and no end in sight. Tighten the screws economically, create proportional distance militarily.
Oreshnik.
I didn’t realize we elected the King of the world. The world recognizes him for the idiot he is.
Two cult members downvoted you, BTW
And you.
Odd that. I get the crazed Homeopath dving me.
But who plays kids.
Besides I’m rubber he is glue what bounces off me sticks to him.