Trump tariffs Highlights (August 7): Investors unfazed by Trump’s 100% semiconductor tariff threat

US President Donald Trump’s threat to impose a 100% tariff on chip imports left analysts puzzled and shares little changed as the industry tried to work out which companies that make and design semiconductors could be hit.

Trump said in a meeting at the Oval Office this week that the tariff would apply to companies unless they had “committed to build” in the US. He named Apple Inc., which had just announced a new $100 billion domestic manufacturing plan, as an example. The biggest chipmakers have largely committed to US production projects or seem to be covered by other trade agreements, making it unclear how wide-reaching the levies would be.  - Bloomberg

Brazil's seafood industry is sounding the alarm to pressure the federal government for immediate relief as it grapples with mounting fears of job losses and bankruptcies as a result of the 50% tariffs the U.S. imposed on most Brazilian exports on Wednesday.

The new levies made the future highly uncertain for Brazilian fishing companies, which sell close to $400 million worth of seafood to the U.S. a year, or about 70% of the sector's annual exports.

"This situation renders our business unviable," said Arimar França Filho, the head of a fishing union in Brazil's northeastern state of Rio Grande do Norte. "While the domestic market can absorb some of our production, it cannot take it all, and we cannot have all our boats fishing solely for Brazil. - Reuters

The visit by a US delegation for the next round of trade talks on August 25 is expected to go ahead as planned, government officials told Moneycontrol on August 7, a day after American President Donald Trump announced an additional 25 percent Russia levy on Indian goods. The sixth round of talks for an initial trade agreement opens August 25 in New Delhi, two days before the 25 percent penalty, which is on top of a 25 percent tariff, for buying Russian oil kicks in. (Read More)

Most stock markets gained Thursday even as President Donald Trump's new tariffs on dozens of countries took effect, with investors eyeing exemptions from his threatened 100-percent levy on semiconductors.

Sentiment was also lifted by hopes of easing geopolitical tensions after the Kremlin said Trump and Russia's leader Vladimir Putin were set to meet for talks in the coming days.

Paris and Frankfurt each piled on around one percent in midday deals.

London was a rare faller ahead of an expected interest-rate cut by the Bank of England. - AFP

India has found itself in the crosshairs of US President Donald Trump over the last few days. What does it mean? It means Trump is now seizing every opportunity — press briefings, off-hand remarks to reporters, social media posts — to target the country he once saw as a close ally. On Wednesday, Trump announced that he is doubling tariffs on India to 50% — among the highest on any country in the world — over New Delhi's move to purchase oil from Russia. Then, he threatened to impose secondary sanctions, signalling that he is no mood to let India off the hook until he manages to arm-twist the country into giving him what he wants. (Read More)

Mukesh Ambani, Chairman and Managing Director of Reliance Industries Ltd, in a letter to shareholders on August 7, said that the company is reimagining the future and that it has grown from an idea into one of the world’s most admired enterprises. Read the full text of Mukesh Ambani's letter to the shareholders titled 'What is good for India is good for Reliance':

German industrial production slumped to its lowest level in June since the pandemic in 2020, data showed Thursday, underlining the fragility of Europe's top economy even before higher US tariffs kicked in.

Factory output in June fell 1.9 percent month-on-month, federal statistics agency Destatis said, steeper than a drop of 0.5 percent forecast by analysts polled by financial data firm FactSet. -AFP

Taiwan said its leading chip manufacturer will not have to pay a 100% tariff on sales to the US, helping drive Taiwan Semiconductor Manufacturing Co. shares to a record.

“TSMC is exempted from the chip tariffs because it has set up plants in the US,” Liu Chin-ching, minister in charge of the National Development Council, said in Taipei on Thursday. As for other Taiwanese companies that may be affected by the levies, they “shall continue to stay ahead” if competitors face the same charges.

The US government has also expressed willingness to continue negotiations with Taiwan on tariff issues, Liu added. The government still expects economic growth in 2025 to reach the level of 3.1%, despite the impact of the new levies, Liu said. - Bloomberg

US President Donald Trump’s additional tariffs on India will further damage the South Asian nation’s already slowing economy and shrink its gross domestic product by as much as a percentage point, analysts said.  Trump on Thursday doubled tariffs on Indian goods to 50% as penalty for buying Russian oil, in a move that could make exports to the US of many industries uncompetitive. The cumulative tariffs — higher than not just those for India’s export rivals such as Vietnam, but also China — could cut outbound shipments to the US by 60% and shave about a percentage point from GDP, estimates Bloomberg Economics. India’s central bank sees the economy expanding 6.5% in fiscal 2026 — same as last year and way below the average 8% growth seen before that. “The overall hit to GDP could be even higher at 1.1% over the medium term” once tariffs on sectors such as pharmaceuticals and electronics are announced, wrote analysts Chetna Kumar and Adam Farrar. - Bloomberg

India’s pharmaceutical industry is forming a multi-pronged strategy to shield itself from potential tariff shocks as US President Donald Trump escalates his trade offensive.

The industry is not taking chances while drug formulations and active pharmaceutical ingredients (APIs) remain exempt from the latest 25 percent additional tariff hike under the ongoing Section 232 investigation. Read more

Andhra Pradesh BJP chief PVN Madhav on Thursday said that US President Donald Trump's high tariffs on India will only hurt his country more and noted that Prime Minister Narendra Modi will solve all problems very smartly.

His comments came after Trump slapped additional 25 per cent tariff on Indian goods, raising the total duties to 50 per cent.

"There is a possibility of more damage happening to America by the actions of President Donald Trump. Now India may face temporary difficulties, but it will achieve great development under Make in India (programme)," Madhav was quoted by PTI.

The highly popular PM Modi will solve all problems very smartly. He will ensure that India does 'not suffer losses' from the US, the BJP leader said.

US President Donald Trump on Wednesday hit Indian goods with an additional 25 per cent tariff, blaming oil ties with Russia. The new duties, set to be enforced from August 28, could lift tariffs on some exports to 50 per cent - one of the steepest rates for a US trade partner.

US media reported on the additional tariff announcement stating how it would complicate the relations between the two countries, that seemed to be “enjoying the friendship” forged by the leaders. The tones and narratives of the publications differed widely, reflecting the broader implications on the India-US ties. Read here

The 25% tariffs on India, announced by US President Donald Trump last week, are now in effect. Moreover, the reciprocal tariff on dozens of other trading partners has also kicked in, with the US President mentioning that billions of dollars are now flowing into the United States.

Last week, the White House announced that India will face tariffs of 25 per cent after Trump issued an executive order listing the various duties that Washington will impose on exports from countries around the world.

On Wednesday, Trump again announced a 25 per cent tariff on India, punishing it for buying Russian oil, taking the total tariff announced on the country to 50 per cent.

US President Donald Trump's sweeping set of tariffs on dozens of trading partners came into force on Thursday.

Taking to Truth Social, he wrote, “It’s midnight! Billions of dollars in tariffs are now flowing into the United States of America!”

Earlier, he said in a post, “Reciprocal tariffs take effect at midnight tonight! Billions of dollars, largely from countries that have taken advantage of the United States for many years, laughing all the way, will start flowing into the USA.”

"The only thing that can stop America's Greatness would be a radical left court that wants to see our country fail," he added further.

After Trump imposed additional 25% tariff on India, Prime Minister Narendra Modi said he "won't compromise on farmers' interests and is ready to pay heavy price". "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it and I am ready for it. India is ready for it," he said. Read more

Congress MP Shashi Tharoor said that given the ongoing scenario, India will have to start looking at other trading partners and there will likely be “pressure within India” to impose comparable reciprocal tariffs on American exports into India.

“Very clearly, we have to act accordingly, and we will have to learn our lessons from this experience. I think there is certainly a likelihood that there will be some pressure within India now to impose comparable reciprocal tariffs on American exports to India. So I think we’re going to have to really start looking at other trading partners much more in these circumstances," he added.

Congress MP Shashi Tharoor has slammed the United States over “double standards” in imposing an additional 25 per cent tariff on India for buying Russian oil. He pointed out that while Americans themselves are importing uranium and palladium from Russia, they have also give China, which imports “far more” Russian oil, a “90-day break” from the US tariffs.

Tharoor further stated that the recent announcement by the US has “not been a particularly friendly gesture” from a country which seemed to be “well disposed” towards India.

"Uranium, palladium, there are various things they (US) are importing from Russia. There is, unfortunately, a certain double standard involved. They have given the Chinese a 90-day break, but the Chinese are importing far more Russian oil than we are. So clearly this has not been a particularly friendly gesture from a country we thought was well disposed towards us, an administration that we thought was well disposed,” Tharoor told reporters.

US President Donald Trump has warned of secondary sanctions, hours after imposing an additional 25% tariff on India. His warning came after he was asked why India was singled out despite other countries, like China, also buying oil from Russia.

Trump said, "It's only been 8 hours. So let's see what happens. You're going to see a lot more...You're going to see so much secondary sanctions.” Read more

Gift Nifty fall nearly 100 points on Trump additional tariff announcement

Trump’s 50% tariff is economic blackmail - an attempt to bully India into an unfair trade deal. PM Modi better not let his weakness override the interests of the Indian people. - Rahul Gandhi on X

Brazil on Wednesday approached the World Trade Organization for relief against trade tariffs imposed by US President Donald Trump, sources in the government of Luiz Inacio Lula da Silva told AFP. The 50-percent tariff on several Brazilian goods went into force Wednesday over what Trump has termed a "witch hunt" against his far-right ally Jair Bolsonaro, the former president on trial for plotting a coup. The sources said Brazil's government had filed a request for consultations with the US mission to the WTO, the first formal step in the trade body's dispute settlement process. Trump's latest tariff salvo raised duties on Brazil from 10 percent to 50 percent for key exports including coffee, beef and sugar. - AFP

You can tariff our exports, but not our sovereignty. Raise your tariffs- we’ll raise our resolve, find better alternatives, and build self-reliance. India bows to none. - Harsh Goenka on X

So @realDonaldTrump has imposed 25% additional tariffs on India as punishment for importing Russian oil. No such tariff on Europe that is importing 8 million tonnes of Russian oil, or China that is importing 108 million tons of Russian oil. We stand alone but we stand united. - Anand Ranganathan on X

In light of the tariff war unleashed by US President Donald Trump, industrialist Anand Mahindra suggested a strategic roadmap for India to capitalize on prevalent global trade disruptions and emerge from it as a stronger economic force. Drawing parallels with how other nations have adapted to changing tariff regimes, Mahindra said he believes that India can turn these challenges into opportunities. (Read More)

More than half of India’s exports to the United States are now at risk following the imposition of an additional 25 percent duty by US President Donald Trump, who signed an executive order accusing India of colluding with Russia. With this latest round of tariffs, the average effective duty on Indian goods has surged to 50 percent, up from 25 percent as per the previous order issued on July 31. Read more

"It is disappointing to see additional tariffs being announced at a time when we are actively working towards resolving the earlier differences and to strengthen our trade relationship through a trade agreement. Announcing another 25% tariff places unnecessary strain on the trade environment. While nations have the right to address trade concerns through tariff measures, political differences are best resolved through mutual dialogue and established forums, not through such measures. I remain hopeful that the Government of India will continue to engage and seek a balanced resolution with the U.S," said Sen.

India on Thursday issued a sharp counterattack on the US over the imposition of additional tariff of 25 per cent on Indian goods, calling it "unfair, unjustified and unreasonable."

Trump signed an executive order Wednesday to place an additional 25% tariff on India for its purchases of Russian oil, bringing the combined tariffs imposed by the United States on its ally to 50%.

"The United States has in recent days targeted India's oil imports from Russia. 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," read a statement issued by the Ministry of External Affairs. Read more

US President Donald Trump on August 6 doubled tariffs on India to 50-percent, targeting New Delhi for purchasing Russian arms and energy. While this immediately threatens India’s labour-intensive exports to American shores, shipments worth around $30 billion covering pharmaceuticals and certain electronic products such as smartphones, semiconductors and energy are so far secure from steeper duties given that they are under an exemption list. India exported drugs and pharmaceutical as well as electronics products (mostly smartphones) to the tune of $10.5 billion and $14.6 billion in FY25, constituting 29 percent of its overall outbound shipments to the US. Indian exports to the US stood at $86.51 billion in FY25 (Read More)

"The United States has in recent days targeted India’s oil imports from Russia. 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. 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. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," Ministry of External Affairs issues statement.

Reacting to US President Donald Trump's decision to impose an additional 25% tariff on India over its continued oil imports from Russia, former diplomat Anil Trigunayat strongly defended India’s position. He questioned, “If you say that India should not buy oil from Russia, can you provide oil at the same price as Russia is doing to us? Should we not look after our own interests?” Emphasizing national interest over external pressure, he added, “We are not going to just give in to these kinds of arm-twisting tactics, whether by President Trump or anybody else.” Trigunayat further suggested that India may respond in kind, saying, “We would be reciprocating, in certain ways, on certain items.” While clarifying that he had no concrete evidence, he speculated that “the Americans, probably, or the Western countries, are not very happy about India's autonomous rise as a major economic power,” and would attempt—unsuccessfully—to hinder its growth.

Commenting on US President Donald Trump's decision to impose an additional 25% tariff on India over its Russian oil purchases, former diplomat Anil Trigunayat termed the move "irrational" and driven by "personal antagonism" rather than sound policy or negotiation. He noted that while the US has limited leverage over Russia due to minimal trade ties, it is targeting countries like India that continue trading with Moscow. Trigunayat revealed that both sides had nearly finalized a trade formula by July 6, but President Trump rejected it and sent negotiators back to the drawing board. “If you're restarting talks, why impose unilateral sanctions again?” he questioned, calling the tariff move both illogical and expected.

Reacting sharply to US President Donald Trump's decision to impose an additional 25% tariff on India over Russian oil purchases, Congress MP Shashi Tharoor accused Washington of applying double standards. “They are importing Uranium, Palladium and more from Russia, yet they target us,” he said, noting that China—despite importing more Russian oil—was granted a 90-day reprieve. “This is not a friendly gesture from a country we thought was well disposed towards us,” Tharoor remarked. He warned that India must “learn its lessons” and consider imposing reciprocal tariffs on American goods, while also reassessing its global trade partnerships.

Reacting to US President Donald Trump's decision to impose an additional 25% tariff on India over its Russian oil purchases, Shiv Sena (UBT) leader Aaditya Thackeray questioned the government's silence. "Why is no minister responding to it? Why are all the ministers silent? Is the trade deal with the United States on or not?" he asked.

Narendra Modi’s friend Trump has imposed a 50% tariff on India.

Trump is repeatedly taking actions against India, yet Narendra Modi doesn’t even mention his name.

Narendra Modi – Show some courage, respond to Trump. - Congress on X

On August 1, President Trump signed an executive order titled ‘Further Modifying The Reciprocal Tariff Rates’, which hiked tariffs on goods from over 60 countries. India was among the most affected, with a steep 25% increase announced. This latest order builds on that directive, doubling the tariff burden on Indian exports.

In a direct accusation, Trump claimed that India is indirectly funding the war in Ukraine by purchasing discounted Russian crude. The US administration argues that such purchases undermine global sanctions and aid Moscow’s war effort. India, however, has defended its position, citing strategic and economic interests.

A day before the tariff hike announcement, President Trump criticised India, calling it a poor trading partner. He warned that the US would "very substantially" raise tariffs on Indian goods within 24 hours, citing India’s energy partnership with Russia. “They’re buying oil from Russia—that’s not okay,” Trump said.

Following Trump’s executive order, the total tariff on most Indian goods will now rise to 50%, excluding a limited exemption list. While the initial 25% tariff becomes effective on August 7, the newly announced additional 25% duty will be implemented after 21 days. The order was signed less than 14 hours before the earlier tariffs were due to take effect.

Sharply escalating trade tensions, US President Donald Trump on Wednesday announced a new 25% tariff on Indian imports. The decision comes in response to India’s continued purchase of oil and defence equipment from Russia. The move is likely to impact bilateral ties significantly, especially in sectors such as pharmaceuticals, textiles, and machinery.