With the August 1st tariff pause deadline looming, President Trump has taken to his Truth Social account to lambast India for continuing to buy oil (on the cheap) from Russia. (emphasis ours)
Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World…
…and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.
But, it’s clear what is really pissing President Trump off…
Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!
INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.
THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!
Any rate 20% or higher would come as a disappointment for India, which had been seeking a better deal than the 19% that Trump offered Indonesia and the Philippines.
Bloomberg reports that India and the US have already signed terms of reference for a bilateral trade deal and have agreed to a fall deadline for that.
The two sides have been negotiating an interim agreement that New Delhi hoped would give it a reprieve from higher US import duties due to kick in on Friday.
Officials in India are still awaiting word from the White House on the extent of tariffs the South Asian nation will face this week, an official told reporters in New Delhi earlier this week, asking not to be identified as the discussions are private.
The most immediate reaction was selling pressure in equity futures…
But how long that weakness will last is anyone’s guess as today’s avalanche of headlines and data is just starting.
The Indian rupee extended a three-day decline on the tariff threat, while the BSE Sensex gave up early gains to trade flat.
The local currency fell as much as 0.5% to 87.24 to the dollar.
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