NEW DELHI: It was a “busy day” at the White House on Wednesday as US President Donald Trump rolled out a series of key announcements, including a 25% tariff and additional penalties on Indian goods, despite repeatedly calling India and Prime Minister Narendra Modi “friends.” At the same time, he offered to assist India’s hostile neighbour Pakistan in developing its “massive oil reserves,” even suggesting that Pakistan might export oil to India in the future.Later, Trump escalated his tone, remarking that India and Russia could “take their dead economies down together.”
Tariff blow for India over trade and Russia ties
Trump said the US has historically done “very little business with India” and blamed high tariffs and non-monetary trade barriers.“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump wrote on Truth Social. “We have done very little business with India — their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together.”He announced that India, the fourth-largest economy, will face a 25 per cent tariff on goods, effective August 1, plus an extra penalty due to its ongoing oil purchases from Russia and military ties with Moscow.“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,” Trump said. “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China.”He added, “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”
US sanctions Indian firms over Iran deals
The US also imposed sanctions on six India-based firms for violating its restrictions on Iran. The US sate department said these companies had engaged in “significant transactions” involving Iranian petroleum products. These actions were part of a broader crackdown on 20 global entities accused of defying American sanctions on Iran.
Oil collaboration with Pakistan announced
Trump then made a major announcement involving Pakistan. He revealed a new agreement between Washington and Islamabad to develop “massive oil reserves” in Pakistan.“We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” he posted. “We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!”
Trade heat on Brazil and South Korea
Apart from India and Pakistan, Trump also announced trade actions against Brazil and South Korea. He imposed a 50 per cent tariff on most Brazilian goods in response to what he called a political “witch hunt” against former President Jair Bolsonaro. However, key sectors like aircraft, energy, and orange juice were spared.“We’re not facing the worst-case scenario,” said Brazilian Treasury Secretary Rogerio Ceron, indicating that the final tariff list was milder than expected.He wrote on Truth Social: “We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States “extremely happy.”Meanwhile, Trump unveiled a revised deal with South Korea, reducing tariffs to 15 per cent. In return, South Korea agreed to invest $350 billion in the US, including $150 billion to rebuild America’s shipbuilding industry under a plan called “Make America Shipbuilding Great Again.”South Korean finance minister Koo Yoon-cheol confirmed the partnership and said, “The shipbuilding package will help both countries.”
Trump takes a swipe at Canada over Palestine
Trump also took aim at Canada after it announced support for Palestinian statehood. “Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!” he posted.
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