Trump Prepares Fresh Tariffs on 60 Countries, India Among Likely Targets

Washington DC: US President Donald Trump is preparing to launch a fresh tariff offensive alongside the ongoing conflict with Iran, with Washington reportedly close to imposing additional tariffs of 10% to 12.5% on imports from around 60 countries, including India. US Trade Representative Jamieson Greer said an announcement is expected soon.

The current 10% baseline tariff imposed by the Trump administration on imports from most countries is set to expire on July 24. The administration plans to replace it with a new tariff regime.

The move follows Section 301 investigations conducted by the Trump administration into around 60 countries, including India, over allegations of discrimination and unfair practices affecting US exports, manufacturing and employment. The new tariffs are expected to be imposed on countries found guilty through those investigations.

Countries likely to be affected include China, the European Union, Japan, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico and India.

Trump recently announced an additional 25% tariff on Brazil and has also threatened to impose a 50% tariff on Canada. The proposed tariff escalation comes at a time when the global economy is already facing disruptions caused by the war in West Asia and the crises in the Strait of Hormuz and the Red Sea.

IMF Warns of Impact on India; US-China AI Tensions Deepen

The International Monetary Fund (IMF) has issued a fresh warning that rising crude oil prices could significantly affect India's economy. The IMF had earlier revised India's GDP growth forecast downward from 6.5% to 6.4%, and has now cautioned that the impact of El Nino could further weaken economic growth.

Meanwhile, amid intensifying competition in artificial intelligence with China, US Treasury Secretary Scott Bessent indicated that Washington could introduce fresh sanctions targeting Beijing.

The growing dominance of Chinese AI companies poses a challenge to US firms such as OpenAI and Anthropic. Concerns have intensified following the recent launch of Moonshot AI's "Kimi K3" model, which has gained rapid popularity. The US alleges that China has achieved its AI advances by misappropriating American technology and says such practices cannot be accepted.

Generic Drug Imports to Get Temporary Relief

Trump also announced that the United States will not impose tariffs on imported generic medicines for the next two years. However, he warned that tariffs would increase sharply thereafter—from 0% to 100% after two years and to 200% from the third year onward.

Trump argued that pharmaceutical manufacturing should be shifted to the United States, urging drug companies to establish production facilities in the country or face steep import duties.

India, one of the largest exporters of generic medicines to the United States, is expected to be significantly affected by the proposed tariff policy. Indian pharmaceutical companies account for an estimated 40% to 50% of the generic medicines sold in the US, and Trump's announcement could influence the performance of Indian pharmaceutical stocks in the market.