(The Center Square) – President Donald Trump threatened to “substantially” increase the 25% tariff rate against India in the next 24 hours.
Trump cited India’s continued purchase of Russian oil and military equipment as the reason for an increase in tariffs.
“They’re fueling the war machine, and if they’re going to do that, I’m not going to be happy,” Trump said to CNBC on Tuesday.
“We do very, very little business with India because their tariffs are so high,” Trump said. “India has not been a good trading partner.”
Trump’s threats against India point to a larger effort to isolate the Russian economy due to the ongoing war in Ukraine. Trump threatened steeper sanctions against Russia if it did not reach a peace deal with Ukraine by Aug. 8.
In a social media post on Monday, Trump said India is selling the oil it purchases from Russia to other markets around the world.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said.
Trump did not specify by how much he would increase rates against India or Russia.
Trump praised the trade deals with the European Union, Japan, Indonesia and South Korea. He said many of these markets were previously closed to the United States.
“Now, all of the sudden, we’re allowed to sell cars into South Korea and trucks and SUVs,” Trump said. “We’re really opening it up.”
Trump also announced an additional “small tariff” on pharmaceuticals, which he said would go up to 150% in the next year.
“We want pharmaceuticals made in our country,” Trump said.
In the last six months, drug companies like Eli Lilly and Johnson and Johnson have announced investments in the United States.
Trump also teased an incoming tariff against semiconductors and chips.
In March, the Taiwan Semiconductor Manufacturing Company announced a $100 billion investment in a facility in Phoenix.
“We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States,” Trump said.
