Trump Hikes Tariffs Up to 50% Targeting India EU and Others
Trump’s New Tariffs Hit Allies and Rivals Alike, Raising Global Trade Tensions
WASHINGTON — A new wave of U.S. tariffs took effect this week after an executive order signed by President Donald Trump last week came into force. Duties on imports have now jumped from 10% to between 15% and 41%, sparking concerns from U.S. businesses and global trading partners.
The sweeping tariff hikes hit goods from key allies like the European Union, Japan, and South Korea, which now face a 15% tariff—despite recently negotiated trade deals meant to avoid harsher penalties.
India, however, has been hit much harder, with a 25% duty now in place that will double to 50% in three weeks. Even steeper rates of 40% and 41% apply to imports from Syria, Myanmar, and Laos.
In a late-night post on his social media platform Truth Social, Trump declared:
“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”
These new tariffs are part of Trump’s ongoing effort to impose “reciprocal” trade duties on countries the U.S. accuses of unfair trade practices. However, sector-specific imports—like steel, automobiles, pharmaceuticals, and semiconductors—are subject to separate rules.
Earlier this week, Trump also proposed a 100% tariff on semiconductors, though Taiwan’s TSMC is expected to be exempt due to its U.S.-based facilities.
Business Concerns and Inflation Worries
Industry groups and economists warn that these tariffs could hurt small American businesses and raise consumer prices, particularly as back-to-school shopping season approaches.
Marc Busch, an international trade expert at Georgetown University, said many U.S. businesses had built up inventories during a 90-day grace period but will now be forced to pass costs on to consumers.
“With back-to-school shopping just weeks away, this will matter politically,” Busch said.
Uncertainty for Allies
Even countries that struck deals with Washington are now dealing with confusion and frustration.
Japan, the EU, and South Korea are still waiting for clear timelines on when promised reductions in auto tariffs will take effect. For now, cars imported from these regions face a 25% sector-specific duty, and some countries say new tariffs are stacking on top of previous ones.
The EU’s wine industry is also seeking a carveout from the tariffs. In a letter to Trump, U.S. wine sellers warned that wine sales make up 60% of restaurant gross margins, and higher prices could be devastating.
New Trade Fronts Open
Trump also escalated trade tensions with India, doubling planned duties to 50% over the country’s continued imports of Russian oil. He hinted at future penalties for any country that buys Russian oil—an indirect move to pressure Moscow amid the ongoing war in Ukraine.
Other countries were targeted too. Trump raised tariffs on Brazilian goods to 50%, citing the legal troubles of his political ally, former president Jair Bolsonaro, who is accused of plotting a coup.
While some Brazilian exports like orange juice and civil aircraft are exempt, coffee, beef, and sugar are not.
Legal Battles Ahead
Trump’s aggressive tariff push may face court challenges over the use of emergency economic powers. Legal experts believe the matter could eventually end up before the U.S. Supreme Court.
As the tariff standoff intensifies, economists are divided: some believe the inflation impact will be short-lived, while others warn of long-term consequences for the U.S. economy and consumers.
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