Trump Signs Executive Order Imposing Additional Tariffs On India; Brazil's President Would Rather Speak To Modi And Xi Than Trump; And More

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Trump Imposes Additional 25 Per Cent Tariff on India Over Russian Oil Imports; Rates To Kick In After 21 Days

U.S. President Donald Trump signed an executive order Wednesday imposing an additional 25 per cent tariff on Indian goods, citing India’s continued imports of Russian oil and gas. The measure aims to "deter countries from supporting the Russian Federation's economy through oil imports," according to the White House.

The new levy brings India's total tariff rate to 50 per cent, matching similar penalties imposed on Brazil. While electronics and pharmaceutical products remain exempt from the additional charges, other sectors face significant competitive disadvantages compared to regional rivals like Vietnam and Bangladesh.

The tariffs are scheduled to take effect in 21 days from the executive order's signing. 

The move represents a significant escalation in trade disputes, potentially jeopardizing decades of U.S.-India economic cooperation while pressuring New Delhi to reduce its energy dependence on Russia amid ongoing geopolitical tensions. Although, the period of 21 days before the order comes into effect could be a signal that Trump is still willing to negotiate a trade deal with India. 

However, the Indian government may not be willing to concede much since Trump has tied the tariffs to India’s sovereignty of its own energy and economic security. The Indian Ministry of External Affairs’ latest response to U.S. administration implied as much. 

‘Will Take All Action Necessary To Protect National Interest: India’ 

India responded to the additional tariff levy via a brief statement. In a note put out by MEA spokesperson, Randhir Jaiswal, the Ministry said:

“The United States has in recent days targeted India’s oil imports from Russia.

“2. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.

“3. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.

“4. We reiterate that these actions are unfair, unjustified and unreasonable.

“5. India will take all actions necessary to protect its national interests.”

Will Speak Modi, Xi To Discuss Potential Joint Response To U.S.Tariffs: Brazil President Lula 

Brazilian President Luiz Inacio Lula da Silva ruled out immediate direct talks with U.S. President Donald Trump following Wednesday's implementation of 50 per cent tariffs on Brazilian goods, calling potential negotiations a "humiliation."

Speaking from his presidential residence, Lula told news agency Reuters his intuition suggested Trump wasn't ready for dialogue. "The day my intuition says Trump is ready to talk, I won't hesitate to call him. But today my intuition says he doesn't want to talk. And I won't humiliate myself."

U.S. President Trump imposed the tariffs on Brazil while demanding an end to the prosecution of former President Jair Bolsonaro, who faces trial for allegedly plotting to overturn Brazil's 2022 election. Lula condemned Trump's intervention as unprecedented, calling it "unacceptable" for the U.S. president to "dictate rules for a sovereign country like Brazil."

The Brazilian leader compared current U.S.-Brazil relations to their "200-year nadir," referencing past American interference including the 1964 military coup. 

Brazil has requested World Trade Organization consultation over the tariffs, while Lula plans to coordinate with BRICS partners including India and China for a potential joint response. Despite the economic pressure, Brazil's economy provides Lula flexibility to resist U.S. demands, and Lula himself emphasized caution over immediate retaliation.

Doval In Moscow, Likely To Meet Putin

National Security Adviser Ajit Doval arrived in Russia on Wednesday for high-level talks with his counterpart Sergei Shoigu and a scheduled meeting with President Vladimir Putin.

However, many reports cited sources to clarify that Doval's Moscow trip was part of pre-scheduled annual engagements, originally planned two weeks earlier.

Doval's visit will also cover discussing future crude oil sourcing arrangements.

Even as Doval was in town, Russian Deputy Defence Minister Alexander Fomin separately met Indian Ambassador Vinay Kumar, with both sides reaffirming their "particularly privileged strategic partnership."

PM Modi Could Visit China Later This Month For SCO Summit

With Doval's Moscow trip and S Jaishankar's scheduled visit to Russia after a few weeks, it now turns out that even PM Modi could visit China later this month to attend the SCO summit in person.

Reports in Indian media claimed that the PM is expected to club the trip to China along with his visit to Japan for the annual India-Japan summit.

The last time PM Modi was in China was in 2018, although Chinese Premier Xi and Modi had last met during the BRICS summit in Kazan in 2024.

Other developments

Revanth Reddy Reportedly Clashed With AICC In Charge In Telangana; Praises Rahul Gandhi In Delhi

Over last week, Telangana-based news portals spoke of a heated verbal clash between Chief Minister Revanth Reddy and AICC Telangana in-charge Meenakshi Natarajan over a scheduled padayatra.

The conflict eventually compelled the Congress high command to drastically alter the party's program itinerary, sources quoted in the reports said.

The reports also claimed that that Reddy was so incensed during the dispute that he reportedly told Natarajan the high command was free to replace him if it was dissatisfied with his leadership.

Strong Warning on Gandhi Loyalty

Meanwhile, speaking at Jantar Mantar in Delhi on Wednesday, Revanth Reddy issued stark warnings about opposing Rahul Gandhi's ideology. "No matter who it is — however great or powerful they may be, or whatever position they hold — if they oppose Rahul Gandhi's vision and message, Telangana will mark the political death of their career," he declared.

The Chief Minister was addressing MPs and INDIA bloc leaders during a protest demanding central approval for 42 per cent reservations for backward classes in education, employment, and politics in Telangana.

RBI Holds Repo Rate at 5.5 Per Cent Amid US Tariff Threats

The Reserve Bank of India (RBI) maintained its benchmark repo rate at 5.5 per cent, citing ongoing uncertainty over US tariff threats that have intensified pressure on the Indian rupee. The decision came as the rupee fell 16 paise following President Donald Trump's fresh warnings of increased tariffs on Indian goods.

RBI Governor Sanjay Malhotra announced the Monetary Policy Committee's unanimous decision to keep the rate unchanged with a neutral stance. The latest policy marks a pause after three consecutive rate cuts that brought the repo rate down from 6.50 per cent to 5.5 per cent.

"The uncertainty over tariffs is still evolving and monetary policy transmission is underway," Malhotra stated. He emphasized that the committee would maintain close vigilance on developing economic data.

The central bank also projected real GDP growth at 6.5 per cent for the current fiscal year, countering Trump's characterisation of India as having a "dead economy." Malhotra also lowered the inflation projection to 3.1 per cent from the earlier estimate of 3.7 per cent. Although he cautioned that retail inflation may edge above 4 per cent in Q4, i.e. the January-March quarter.

You’re all caught up—until next time.