Senator Rand Paul, R-Ky., discusses the impact of retaliatory tariffs on Kentucky bourbon and whisky as well as the effects of tariffs on consumers on ‘Kudlow.’
President Donald Trump’s long-threatened reciprocal tariffs took effect Thursday, slapping many nations with substantial tariff increases.
Trump initially announced the tariff levels on “Liberation Day” or April 2, ultimately delaying the plan until now to give nations time to negotiate trade deals. While many nations did strike a deal, goods from more than 60 countries and the European Union will still be hit with tariffs of 10% or more as of Thursday.
Trump has wielded the threat of tariffs as a weapon to secure trade deals for months.
In the days leading up to the August deadline, Trump unveiled a wave of major trade agreements with key U.S. partners, including Japan, the United Kingdom, the European Union and South Korea.
TRUMP’S GLOBAL RESET OF TRADE RELATIONS WILL REMAIN IN THE SPOTLIGHT THIS WEEK
President Donald Trump in the Oval Office of the White House in Washington, D.C., on Aug. 6, 2025. (Bonnie Cash/UPI/Bloomberg via Getty Images / Getty Images)
On Monday, Trump said he would “substantially” raise tariffs on imported Indian goods, citing New Delhi’s continued purchase and resale of sanctioned Russian oil on the open market.
Trump argued that India’s practice of purchasing discounted Russian crude and re-selling it helps sustain Moscow’s wartime economy amid Western sanctions. The hike in duties signals a widening rift between New Delhi and Washington.
A SHADOWY FLEET OF ‘GHOST SHIPS’ IS FERRYING RUSSIAN OIL TO INDIAN PORTS
President Donald Trump and Indian Prime Minister Narendra Modi meet in the Oval Office at the White House on February 13, 2025 in Washington, DC. (Andrew Harnik/Getty Images / Getty Images)
“India went from the highest tariffs ever. They will give us zero tariffs, and they’re going to let us go in. But that’s not good enough, because of what they’re doing with oil,” he said.
TRUMP HITS INDIA WITH 25% TARIFF OVER RUSSIA OIL PURCHASES
India, the world’s fourth-largest economy, ran a trade deficit of nearly $46 billion with the U.S. in 2024, according to data complied by the U.S. Trade Representative.
Trump also recently raised the tariff on Canada, America’s second-largest trading partner behind Mexico, from 25% to 35%.
New York Times bestselling author Larry McDonald discusses whether President Donald Trump’s trade and tariff strategy is becoming clearer to critics on ‘Morning with Maria.’
Earlier this year, Trump imposed 25% tariffs on Canadian steel, automobiles and other products not covered under the U.S.-Mexico-Canada Agreement. Canada retaliated and imposed $43 billion worth of its own tariffs against U.S. goods.
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The leading categories of bilateral trade between the U.S. and Canada include energy, motor vehicles, goods related to the aerospace sector and $30 billion in agricultural products.
FOX Business’ Amanda Macias contributed to this report