Berliner Boersenzeitung - Trump hits India with 25% tariff and 'penalty' over Russia ties

The measures will kick in on Friday, Trump posted on his Truth Social platform, adding to a bevy of other tariff hikes set to take effect the same day.

In a separate post, Trump said the August 1 deadline "stands strong, and will not be extended."

Trump has issued multiple delays to his so-called "reciprocal" tariffs since first announcing them in early April, while instituting an interim 10 percent baseline.

The 25 percent tariff on India would be marginally lower than the rate announced in April, but is higher than those of other Asian countries that have struck preliminary trade agreements with Washington.

India, the world's most populous country, was one of the first few major economies to engage the Trump administration in broader trade talks.

But six months later, Trump's sweeping demands and India's reluctance to fully open its agricultural and dairy sectors have so far prevented New Delhi from sealing a deal.

"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said Wednesday morning.

He added that India has "always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE."

In addition to the 25 percent tariff, India will face "a penalty for the above," Trump said, without any specification.

The measure comes as the 79-year-old Republican has signaled he intends to tighten US pressure on Moscow to halt fighting in Ukraine and negotiate a peace deal.

On Tuesday, Trump said he was giving Russian President Vladimir Putin 10 days -- which would mean the end of next week -- to change course in Ukraine or face new tariffs.

He had previously threatened to impose "secondary tariffs" that would target Russia's remaining trade partners -- such as China and India -- seeking to impede Moscow's ability to survive already sweeping Western sanctions.

- China trade talks -

Trump has set out to upend the global economy by trying to leverage US economic power to squeeze trading partners with tariffs and force foreign companies to move to the United States.

He has already announced deal outlines with five countries -- Britain, Vietnam, Japan, Indonesia and the Philippines -- as well as the one with the 27-nation EU.

US and Chinese officials held talks this week in Stockholm on extending a trade truce that has temporarily lowered tariffs from soaring triple-digits.

While no deal was announced at the meetings, both sides are eying an extension ahead of the August 12 deadline.

Meanwhile Trump has threatened Brazil with 50 percent tariffs beginning Friday -- in part to pressure the South American ally to shut down the trial of far-right former president Jair Bolsonaro on coup charges.

Trump has imposed many of his sweeping tariffs citing emergency authorities, which are being challenged in US court.

(F.Schuster--BBZ)