Donald Trump Tariffs News Highlights: US stocks up as market shrugs off tariff increases

US President Donald Trump on Wednesday signed an order to impose an additional 25% tariff on Indian goods, citing India’s continued purchase of Russian oil, a major source of funding for Moscow’s war in Ukraine.

The new tariff will come into effect in three weeks and will be in addition to a separate 25% duty that takes force on Thursday. Exemptions remain in place for items already covered by sector-specific tariffs, including steel and aluminium, as well as potentially affected categories like pharmaceuticals.

As per the executive order the goods imported from India into the United States will face an additional 25% import duty.

This new rate will apply to goods brought in for consumption, or taken out of warehouses for consumption, starting from 12:01 am EDT, 21 days after the order is issued.

However, there are two exceptions: the higher duty will not apply to goods that:

(1) were already loaded onto a ship and on their way to the US before the 12:01 am deadline
(2) are officially brought in for consumption before 12:01 am on September 17, 2025.

US President Donald Trump signed an executive order imposing an additional 25% tariff on India in response to its continued purchase of Russian oil.

August 7: As per Reuters, Trump's directive on “reciprocal” tariffs will take effect, impacting exports from 69 trading partners. The order includes higher US import duty rates ranging from 10% to 41%.

August 12: Trump is expected to decide whether to extend a trade truce with China, which expires on this date. If the truce lapses, tariffs could surge to triple-digit levels, escalating the trade war between the world’s two largest economies, a conflict that poses a serious threat to global economic growth.

August 29: A new executive order will come into force, suspending the “de minimis” exemption. From this date, packages worth $800 or less sent to the US outside the international postal network will no longer be duty-free and will instead face “all applicable duties.”

September 29: Pharmaceutical companies face a deadline to submit binding commitments to reduce medicine prices in the US, as part of Trump’s ongoing efforts to rein in healthcare costs.

Goldman Sachs trimmed India’s real GDP growth projection slightly by 0.1 percentage point to 6.5% for calendar year 2025 (CY25), and by 0.2 percentage point to 6.4% for 2026 (CY26).

The brokerage firm added, “In our view, some of these tariffs are likely to be negotiated lower over time, and further downside risk to the growth trajectory mainly emanates from the uncertainty channel.”

Despite the softer growth outlook, Goldman Sachs noted a positive development on the inflation front. It lowered India’s inflation forecast by 0.2 percentage points for both CY25 and FY26, now pegged at 3.0% year-on-year.

As the US rolls out a new wave of tariffs on Thursday, US President Donald Trump is tightening the screws on global trade routes used to dodge duties.

A key focus is on "transshipment," a practice where goods are routed through third countries with lower tariffs before reaching the US. Under the new rules, such goods will now face an additional 40 per cent duty, dealing a blow to strategies commonly used by Chinese companies and others.

The latest round of what the US calls “reciprocal” tariffs will hit a wide range of countries, including India and Taiwan, as Washington cracks down on what it sees as unfair trade practices.

While the new rules don't single out specific nations, analysts believe China will be most affected, given its central role in global manufacturing.

Experts say the move reflects an effort to strengthen the US tariff regime rather than a full-blown attempt to cut economic ties with China.

Japan will begin importing Ford’s hefty F-150 pickup trucks, US President Donald Trump said, even as uncertainty continues to cloud the trade deal between the two nations.

Under the agreement announced in July, a 15% “reciprocal” tariff will apply to Japanese imports, lower than the previously threatened 25%. These tariffs will come into force from Thursday for Japan and several other countries.

In exchange, the White House said that Japan would ease its restrictions on American vehicles, including accepting US auto safety standards.

“They’re taking our cars,” Trump said in a phone interview with CNBC on Tuesday. “They’re taking the very beautiful Ford F-150, which does very well. And I’m sure we’ll do very well there, and other things that do very well here will also do well there.”

While Japanese automakers sell millions of cars in the US each year, American vehicles are a rare sight in Japan. Ford withdrew from the Japanese market nearly ten years ago. One major hurdle is the size, American cars like the F-150 are often too large for Japan’s narrower roads, and their left-hand steering setup also poses a challenge.

Meanwhile, Tokyo and Washington still appear divided over some key aspects of the trade pact, particularly the timeline for reducing tariffs on Japanese car exports to the US.

US imports of goods dropped nearly 4% in June, the US commerce department said on Tuesday, as Donald Trump’s ongoing tariff measures continued to affect trade flows.

The fall in imports comes after businesses rushed to bring in goods earlier this year ahead of expected tariff hikes, temporarily boosting shipments and pushing the trade deficit to a record $138.3 billion in March. Now, with shifting tariff deadlines and ongoing uncertainty in trade negotiations, companies appear to be adjusting their strategies.

Exports also slipped by about 0.5% in June, mainly due to a decline in sales of US industrial goods. Still, the overall trade deficit narrowed to $60.2 billion during the month.

Since returning to office in January, Trump has raised tariffs across various industries and trading partners, pushing U.S. tariff rates to levels not seen in over a century. He has frequently changed, delayed, or suspended these tariffs to make room for negotiations, resulting in broad agreements with countries like Japan and the European Union. However, higher tariffs on dozens of countries are set to return on Thursday unless new deals are reached.

The impact of Trump's aggressive trade and tariff policies has been widespread, affecting nations across economic spectrums. Countries, whether allies or competitors, are being categorised based on their willingness to appease the US president with compliments and promises of American investments. Trump has cited substantial investment figures, including $600 billion from the European Union and $500 billion from Japan, though the specifics of these arrangements remain unclear. He maintains these commitments demonstrate America's renewed prosperity.

The prioritisation of trade over geopolitical relationships in Trump's America-first policy has prompted numerous global leaders to seek urgent meetings in Washington. Following a confrontational telephone conversation, Switzerland's President Karin Keller-Sutter is heading to the United States to discuss tax reductions after Trump imposed a 39% tariff on Swiss imports, apparently due to her insufficient deference.

Switzerland relies heavily on the American market for its exports, including premium timepieces, ornamental items, confectionery and medical supplies. While American consumers will face higher prices for these Swiss goods, as well as Indian exports such as clothing and marine products due to tariffs exceeding 25%, this situation creates opportunities for nations subject to lower duty rates to gain market advantage.

Trump has criticised the existing trade relationship with India, valued at approximately $135 billion, stating "we do very, very little business with India because their tariffs are so high". Despite India being the ninth-largest US trading partner, Trump expressed concern over the $45-billion trade deficit, resulting from India's $87-billion exports to the US against US exports to India of $42 billion.

"So India has not been a good trading partner, because they do a lot of business with us, but we don't do business with them," he stated, despite India's commitment to reduce the deficit through increased purchases of US military equipment, oil and gas, amongst other goods. He insisted that India should provide market access to US automobile manufacturers, similar to Japan, South Korea, and the EU, even though American car makers struggle to compete in the global marketplace.

The Trump administration has implemented inconsistent trade policies across nations, showing leniency towards China due to its strategic exports such as rare earths to the US.
In contrast, nations like India face stricter measures. The US has swiftly imposed retaliatory tariffs on assertive countries like Canada, whilst being more accommodating to compliant nations such as Japan and South Korea, or those like Mexico that have managed to delay action.

Russia asserted on Tuesday that nations possess the autonomy to choose their trading associates and establish economic partnerships according to their national interests. This statement followed Trump's warning about imposing higher tariffs on India due to its Russian oil purchases.

"We believe sovereign countries must have and do have the right to choose their trade partners on their own and independently determine those modes of trade and economic cooperation that suit the interests of a country in question," stated Kremlin spokesman Dmitry Peskov.

Relations between the United States and India are deteriorating due to India's purchase of Russian oil. US President Donald Trump, criticising New Delhi for "fuelling the (Russian) war machine", announced plans to significantly increase tariffs on Indian exports within 24 hours, beyond the existing 25% levy. During a CNBC interview, Trump stated that whilst India had agreed to eliminate tariffs on US imports, this concession was insufficient due to India's stance on Russia.

"And if they're going to do that (fuel the war machine), then I'm not going to be happy," Trump stated irritably, following New Delhi's firm declaration to maintain Russian oil imports. India defended its position by pointing out that Washington had previously encouraged such imports to help stabilise global energy markets.

On Tuesday, US President Donald Trump announced plans to implement a graduated tariff system on pharmaceutical imports, beginning with a modest rate before escalating to 150% within 18 months and ultimately reaching 250%. "We want pharmaceuticals made in our country," Trump told CNBC.

The initial tariff percentage remained unspecified in his announcement. This follows his previous statements, including a February declaration suggesting sectoral tariffs on pharmaceuticals and semiconductor chips would begin at "25% or higher" with substantial increases over a year's time.

His earlier projection in the previous month had indicated a possible 200% ceiling. Trump also indicated his intention to reveal semiconductor and chip tariffs in approximately a week, without providing additional information.

The pharmaceutical sector remains under national security assessment in the United States, with industry participants preparing for potential sector-specific duties. The timeline for releasing this investigation's findings remains undisclosed.

The US President's special envoy Steve Witkoff landed in Moscow, as reported by Russian state media on Wednesday, shortly before the White House's ultimatum for Russia to secure a peace agreement with Ukraine or risk facing harsh economic sanctions.

State broadcaster TASS showed footage of Witkoff walking in the early morning through Zaryadye Park near the Kremlin, accompanied by Kirill Dmitriev, who serves as the Russian president's representative for investment and economic cooperation.

In recent months, Dmitriev has been instrumental in facilitating direct peace negotiations between Russia and Ukraine in Istanbul, alongside discussions between Russian and American officials.

Russian authorities have not yet indicated whether Witkoff will have an audience with President Vladimir Putin during his visit.
On Monday, Kremlin spokesperson Dmitry Peskov expressed positive sentiments about Witkoff's arrival, stating, "We consider (talks with Witkoff) important, substantive and very useful."