Trump's tariff on India major setback in bilateral relations, say experts
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6 minutes ago
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While others given grace, Canada gets short end of stick with 35% Trump tariffs from Aug 1
The move - which Washington linked in part to what it said was Canada's failure to stop fentanyl smuggling - is the latest blow in a months-long tariff war which Trump initiated shortly after taking power read more US President Donald Trump and Canadian Prime Minister Mark Carney. The Canadian PM earlier in May said his government is talking to the US about joining the Golden Dome missile defence program. AFP U.S. President Donald Trump on Thursday signed an executive order increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the U.S.-Mexico-Canada trade agreement, the White House said. Goods transshipped to another country to evade the new tariffs would be subject to a transshipment levy of 40%, according to a White House fact sheet. The move - which Washington linked in part to what it said was Canada's failure to stop fentanyl smuggling - is the latest blow in a months-long tariff war which Trump initiated shortly after taking power. STORY CONTINUES BELOW THIS AD The announcement blaming Canada's 'continued inaction and retaliation' comes after Trump said Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place. Trump had said any country failing to strike a deal with the U.S. before Friday will be subjected to higher tariffs imposed on goods. Carney early on Friday said he was disappointed by Trump's decision. 'While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong,' Carney said in a post on X. U.S. duties and tariffs will heavily affect lumber, steel, aluminum, and automobiles, he added, vowing action to protect Canadian jobs, buy Canadian goods, invest in industrial competitiveness and diversify export markets. To justify its step, the U.S. has cited the cross-border flow of fentanyl, even though Canada accounts for just 1% of U.S. fentanyl imports and has been working intensively to further reduce the volumes, Carney added. Trump told NBC News on Thursday he was open to further discussions with Canada, adding that he may even speak with Carney later in the night. STORY CONTINUES BELOW THIS AD Premier Doug Ford of Ontario, which accounts for around 40% of Canadian GDP and is the country's industrial heartland, demanded Ottawa slap a 50% counter tariff on imports of U.S. steel and aluminum. 'Canada shouldn't settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground,' he said in a post on X. Trump said that while he loved Canada, it had treated the United States 'very badly' for years. U.S. Commerce Secretary Howard Lutnick said Trump could reconsider the tariff if Carney 'starts turning on the charm and if he takes off his retaliation.' Earlier Thursday, Trump agreed to give Mexico a 90-day window to work toward a deal, allowing it to avoid a 30% tariff that he threatened to impose by August 1. Mexico will still have to pay a 25% duty on U.S.-bound exports that are non USMCA-compliant, a tariff that Trump has linked to demands that Mexico do more to curb drug and human smuggling. STORY CONTINUES BELOW THIS AD Canada sends around 75% of all its exports south of the border and is vulnerable to U.S. trade action. The economy has shown surprising resilience in the face of tariffs and is expected to avoid recession, economists say. About 90% of Canadian exports to the U.S. in May were exempt under the USMCA. The compliance level has shot up dramatically in the last few months, while some companies have diversified exports to avoid tariffs. Canadian government data shows exports to the U.S. dropped by 10 percentage points to 68% of total exports between May 2024 and May 2025, focused on manufacturing products such as cars and parts, and products made with steel and aluminum. Carney told reporters in June that if the two countries do not reach a trade deal by August 1, Canada would likely impose more counter levies on U.S. exports of steel and aluminum.
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First Post
6 minutes ago
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Trump's ‘penalty' tariff threat: How much Russian oil does India buy? What are the other alternatives?
Donald Trump's threat of a 'penalty' tariff on India for buying Russian crude oil looms large as New Delhi and Washington try to reach a trade deal. Russia accounted for a mere 0.2 per cent of India's imports of crude oil before the Ukraine war began in February 2022. Today, the South Asian country is among the top buyers of Russian oil. But how did this happen? read more A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia, July 14, 2025. File Photo/Reuters United States President Donald Trump has increased pressure on India to reach a bilateral trade deal by imposing 25 per cent tariffs on Indian imports. Compared to India, more than 50 countries have lower levies, including Pakistan and Bangladesh at 19 per cent and 20 per cent, respectively. On Wednesday (July 30), Trump announced 25 per cent tariffs on goods imported from India from August 1 and threatened a 'penalty' tariff for buying Russian crude oil. In another scathing attack, the US president said that India and Russia could 'take their dead economies down together.' STORY CONTINUES BELOW THIS AD As Trump goes after New Delhi for its trade with Moscow, particularly crude, can India give up Russian oil? Let's take a closer look. How much Russian oil does India buy? India's oil purchases from Russia have seen a hike since Moscow invaded Ukraine in February 2022. In fact, China and India are the top two buyers of Russian oil. Before the Ukraine invasion in early 2022, Russia accounted for a mere 0.2 per cent of India's imports of crude oil. India purchased 68,000 barrels per day of crude oil from Russia in January 2022, PTI reported, citing global real-time data and analytics provider Kpler. By June 2022, Russia replaced Iraq to become India's top oil supplier. Moscow supplied 1.12 million barrels per day (bpd) to India, compared to 993,000 bpd from Iraq and 695,000 bpd from Saudi Arabia. The turnabout came as the West sanctioned Russia over its war in Ukraine. This led Moscow to cut crude prices, with discounts reaching $40 per barrel at one point. India ramped up its purchase of discounted crude oil from Russia. In May 2023, Russian oil imports peaked at 2.15 million bpd. A man stands at an Indian Oil fuel station in Sonipat, March 5, 2025. India's oil purchase from Russia has increased in the past three years. File Photo/Reuters India's import of crude oil from Russia has not fallen below 1.4 million bpd. While prices have varied, New Delhi has since bought Russian oil worth approximately $275 billion each year, as per a New York Times (NYT) report. STORY CONTINUES BELOW THIS AD Since the Western sanctions on Russian oil, China has purchased 47 per cent of Russia's crude exports, followed by India (38 per cent), the European Union (six per cent), and Turkiye (six per cent), according to the Centre for Research on Energy and Clean Air (CREA) analysis. Last month, India's crude oil imports from Russia rose to an 11-month high of about 2.08 million barrels per day. 'In June, India remained the second-largest purchaser of Russian fossil fuels, importing fossil fuels worth 4.5 billion euros. Crude oil accounted for 80 per cent (3.6 billion euros) of these imports,' as per the CREA data, reported by CNBC-TV18. The oil companies in India refined some of their imported crude oil for domestic consumption, while the rest was exported as diesel and other products, including to Europe. The cheap Russian oil helped India keep inflation in check and the economy stable amid growing geopolitical tensions. India has maintained a neutral stance in Russia's war with Ukraine. It has also defended its trade with Moscow, citing historical ties and energy needs. STORY CONTINUES BELOW THIS AD Union Minister of Petroleum and Natural Gas Hardeep Singh Puri has also repeatedly stated that global oil prices would have significantly spiked if India had not purchased Russian oil. Can India cease buying Russian oil? As Trump presses New Delhi, Indian state refiners have stopped buying Russian oil in the past week, industry sources told Reuters. On July 14, Trump had threatened 100 per cent tariffs on countries buying Russian oil unless Moscow reached a peace deal with Ukraine. Puri previously asserted that India was not perturbed by the US president's threat, as oil markets remain well supplied. 'Russia is 10 per cent of global production. We have the analysis that if Russia were not included, the prices would have gone to $130 a barrel. Even Turkey, China, Brazil and even the EU have bought oil and gas from Russia,' the minister said. Puri also warned an uptick in oil prices if Russian crude was shunned. 'There are two possibilities: one, the whole world consumes 10 per cent less — which means some people won't get heating in winter; some won't get air conditioning in summer; some of the transport will stop flying. Or, you start buying more from the remaining 90 per cent (suppliers). You know what that would do to prices? The prices would skyrocket,' he said. STORY CONTINUES BELOW THIS AD If Trump goes through with his threat of a 'penalty' tariff, it would become difficult for India to continue buying Russian oil, the discount on which has decreased. In such a case, Indian refiners will have to return to their traditional crude suppliers in West Asia and seek new ones such as Brazil. However, these new barrels would bear a higher cost, ranging around $4-5/barrel, as per an Economic Times report. India has also enhanced its crude imports from the US. However, it is not easy for the South Asian country to ditch Russian oil, partly because its refineries are configured for Russia's denser and more sulfurous fuel, reported NYT. 'The pivot away from Russia — if forced — will be costly, complex and politically fraught,' Kpler wrote in a note this week. With inputs from agencies
Mint
6 minutes ago
- Mint
Trump talks tough on drug prices but his demands have softened
President Donald Trump appears to be easing up on his push to force drugmakers to cut their prices for U.S. patients, even as he ramps up the rhetoric he is deploying against the companies. The president on Thursday afternoon posted letters to his Truth Social platform that the White House had sent to 17 large pharmaceutical and biotech companies, saying they each have until late September to cut certain U.S. prices, or else the administration will 'deploy every tool in our arsenal to protect American families." Drug stocks fell in response. The S&P 500 Pharmaceuticals industry group index was down 2.7% Thursday, while the S&P 500 was down 0.4%. Still, the new demands Trump made on Thursday appear to require far less from the companies than had been implied by an executive order on drug pricing the president signed two months ago. In May, the White House resurfaced a proposal from the first Trump administration that would peg prices paid for prescription medicines in the U.S. to the lowest prices paid in other wealthy countries, the so-called most-favored-nation price. An executive order signed May 12 ordered federal agencies to determine most-favored-nation prices for drugs. It laid out penalties if the companies didn't make 'significant progress" toward lowering U.S. pricing to those levels. The order suggested that the most-favored-nation prices would apply to all U.S. drugs, regardless of whether they were paid for by the federal government or private payers, and whether the drugs were new or had been on the market for years. The new letters posted Thursday make narrower demands. Trump told drugmakers they must lower the prices of drugs already on the market to most-favored-nation rates only for Medicaid, the health insurance program for low-income Americans paid for jointly by state governments and the federal government. Medicaid already pays a steeply discounted rate for drugs under pre-existing programs. For all other payers, including Medicare and commercial plans, Trump says the most-favored-nation rates should only apply to newly launched medicines. 'I think Trump is, in some ways, softening his tone on most favored nation," Raymond James healthcare policy analyst Chris Meekins told Barron's. 'Originally, he said the U.S. will get the best price that any other nation gets for all products. Now he's carving out specific categories." Meekins said that the new approach is potentially more realistic. 'Attempting to try to make sure the U.S. gets better prices on future products is something companies can work with the administration to try to do going forward," he said. Details about the plan remain scarce. The drug industry lobby group PhRMA, in a statement, criticized the effort. 'Importing foreign price controls would undermine American leadership, hurting patients and workers," said PhRMA senior vice president Alex Schriver in a statement. 'At a time when China is threatening to overtake the U.S. in biopharmaceutical leadership, we need to ensure America continues to be the most attractive place in the world to develop innovative medicines." Trump sent the letters to top executives at AbbVie, Bristol Myers Squibb, Novartis, Gilead Sciences, Pfizer, and other companies. In the letters to Pfizer and Regeneron, he crossed out the surnames of the companies' CEOs, Albert Bourla and Leonard Schleifer, and wrote in their first names by hand. Write to Josh Nathan-Kazis at
