How world is navigating US President Donald Trump's trade tariffs
What's the story
US President Donald Trump has announced a 25% tariff on all imports from India. The move is set to take effect from tomorrow. The decision came just a day after Indian officials announced plans for a US trade delegation visit from August 25-29 to negotiate a potential trade deal. To note, India is not the only country facing US tariffs and some of them have struck trade deals to mitigate the effects. Let's take a look.
Global impact
Canada, Mexico affected by Trump's new tariff regime
Along with India, Trump has also imposed tariffs on several other nations. These include Canada and Mexico, which will see a tariff rate of 35% and 30%, respectively from August 1. Other countries affected by the new tariff regime are Iraq (35%), Moldova (25%), Libya (30%), Algeria (30%), and Brunei (25%). The move is part of Trump's broader strategy to renegotiate trade deals with these countries.
Trade agreements
Countries with trade deals
On the flip side, some countries have managed to strike trade deals with the US. These include South Korea (now have to pay 15% tariff), EU (15%), Japan (15%), Philippines (19%), Indonesia (19%), Vietnam (20%), and UK (10%).
Energy imports
Trump's tariff move linked to India's Russian energy imports
Along with the tariff, Trump has also threatened unspecified penalties against India for its energy imports from Russia. The US President's decision comes amid rising tensions over India's close ties with Russia and its continued energy purchases despite the ongoing war in Ukraine. Notably, India's energy relationship with Russia has also drawn criticism from several other Western nations.