On the eve of the U.S. reciprocal tariffs taking effect on August 1, President Trump heightened the pressure regarding the unresolved negotiations. According to CNN on the 29th local time, President Trump stated on Truth Social that “India is a friend of the United States, but trade has been relatively low,” citing “India has the highest tariffs in the world and the most unreasonable non-tariff trade barriers.”
This signals the direction the U.S. wants in its trade negotiations with India. President Trump also pointed out that “India has always purchased most of its military equipment from Russia, and, along with China, is the largest importer of Russian energy.”
This is seen as a statement to press India not only to open its market but also to import U.S. weapons and energy. Previously, President Trump announced his intention to impose a 25% tariff on India if such demands were not met.
India is reportedly aiming to conclude tariff negotiations with the United States by September or October. In response, White House National Economic Council Chairman Kevin Hassett said, “Over time, Indian companies will shift their production bases to the U.S., and India will open up its market more to the U.S.”
This suggests that unlike previous instances, the U.S. is not offering concessions with tariff deferral measures and plans to continue negotiations from a favorable position after August 1. Indeed, on this day, President Trump signed an executive order imposing a 50% tariff on Brazil starting August 1.
Regarding this, Brazil’s President Lula expressed, “We will not be dragged along,” and indicated that Brazil might consider imposing retaliatory tariffs on the U.S. The Lula administration views President Trump’s 50% tariff imposition as politically motivated, suggesting that Trump ignores the Lula administration’s dialogue proposals to support former President Bolsonaro.
In fact, President Trump has described the prosecution of former President Bolsonaro as a “witch hunt.” However, President Trump explained the reason for the 50% tariff imposition as Brazil’s actions harming U.S. diplomatic policy and the economy, including the freedom of expression of American companies and citizens.
Previously, Brazil’s Supreme Court Justice Zimarais imposed a fine on the American company X for refusing to provide information regarding Bolsonaro’s supporters. When X objected to the fine, Justice Zimarais ordered the freezing of the “Starlink” account operated by Elon Musk’s SpaceX and the blocking of X’s access.
Separately from the tariff executive order, the U.S. Treasury included Justice Zimarais in the sanctions list for imposing fines on X during Bolsonaro’s trial. Trump also warned Mexico, the largest importer to the U.S., with a 30% tariff on the 12th.
Subsequently, Mexico sent several negotiation teams to Washington to propose ways to address trade imbalances, and President Trump is expected to soon speak with Mexican President Sheinflbaum.
As a member of the USMCA, Canada is preparing for a possible extension of negotiations. Canadian Prime Minister Carney told journalists, “Negotiations with the U.S. are complex and comprehensive, and progressing constructively,” but also added, “However, they may not be concluded by August 1.”
Until the previous day, the U.S. had reached agreements with the UK, EU, Japan, Vietnam, Indonesia, and the Philippines, and concluded negotiations with Korea to set reciprocal tariffs at 15% on this day.