Berliner Boersenzeitung - Trump hikes India levy over Russian oil as tariff deadline approaches

Trump's additional 25-percent tariff on Indian goods, set to come into place in three weeks, stacks atop a separate 25-percent duty entering into force Thursday. This takes the level to 50 percent for many products.

Trump's order also threatens potential penalties on other countries for "directly or indirectly importing Russian Federation oil," a key source of revenue for Moscow's war in Ukraine.

But exemptions remain 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 also among this list of exempted products for now, notably shielding Apple from a major hit as the US tech titan shifts production from China to India.

India's foreign ministry condemned Trump's tariff announcement Wednesday, calling the move "unfair, unjustified and unreasonable."

The ministry had previously said that India began importing from Russia as traditional supplies were diverted to Europe after the outbreak of the conflict.

It noted that Washington at that time had "actively encouraged such imports by India for strengthening global energy market stability."

But Trump recently ramped up pressure on India over its purchases of Russian oil, 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 Moscow on Wednesday, media in New Delhi reported, coinciding with a visit by US envoy Steve Witkoff.

The latest 25-percent additional tariff is notably lower than a 100-percent level Trump floated last month when he told Russia to end its 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 -

Trump's latest salvo targeting India came after he separately took aim at Brazil over the trial of his right-wing ally, former president Jair Bolsonaro -- who is accused of planning a coup.

On Wednesday, US tariffs on various Brazilian goods surged from 10 percent to 50 percent, although broad exemptions including for orange juice and civil aircraft are expected to soften the blow.

Come Thursday, a new wave of tariffs on imports from dozens of other economies, ranging from the European Union to Taiwan, is set to kick in.

These updated "reciprocal" tariffs, meant to address trade practices Washington deems unfair, go as high as 41 percent for countries like Syria.

Other major US trading partners face varying increases from a current 10-percent level, starting at 15 percent for economies like the EU, Japan and South Korea.

Countries not targeted by these "reciprocal" tariff hikes continue facing a 10-percent US levy Trump imposed in April.

Trump's plans have sparked a rush to avert the steeper duties, with Switzerland's President Karin Keller-Sutter hurrying to Washington this week ahead of the Thursday deadline.

Though she secured a meeting with Secretary of State Marco Rubio, it was unclear if she would meet Trump or any top economic officials.

Her Alpine country faces a 39-percent duty on many of its exports, and while its key pharmaceutical sector has been spared for now, Trump has said a potential separate tariff could eventually rise to 250 percent.

Some of Trump's sweeping tariffs face legal challenges over his use of emergency economic powers, with the cases likely to ultimately reach the Supreme Court.

(H.Schneide--BBZ)