Trump takes aim at India’s trade policies with new tariffs
In response to India’s high tariffs on American goods and its purchases of Russian oil, President Donald Trump declared a 25% tariff on items imported from India. Trump called India a friend in a post on Truth Social, but he also attacked its trade practices, saying they are “far too high” for American goods.
In addition, the president said he planned to impose more sanctions because of India’s ongoing energy and military links with Russia, which he said support the Kremlin’s war in Ukraine. Because of its long-standing relations with the Russian leadership, India is reluctant to back Western sanctions against Moscow.
The announcement of the tariff coincides with important economic events in the United States. Following Trump’s recent agreement with the European Union, trade agreements involving India, one of America’s biggest trading partners, were eagerly awaited.
The Federal Reserve’s planned interest rate announcement later today will add to the day’s economic focus. President Trump urged the Fed to reevaluate its interest rate policy after the release of recent GDP statistics that showed a growth rate of 3% that exceeded forecasts, even though economists do not anticipate the Fed lowering rates. He urged the Fed to lower interest rates in order to encourage refinances and house purchases.
In this increasingly complicated trade picture, it is still unclear how Russia and India would respond as economic data are released.
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