Trump Threatens Higher Tariff Rates on India Over Russian Oil

China said it would expand access to its market for Brazilian coffee exporters. (AFP via Getty Images)

The tariff rate on imports from India will rise “substantially,” President Donald Trump wrote on Truth Social Monday.

“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” he added.

India, which shipped some $87 billion worth of goods into the U.S. last year and has a trade surplus of nearly $46 billion, is currently facing 25% tariffs for its imports effective Aug. 7.

Trump said he was raising India’s rate to an unspecified amount because “They don’t care how many people in Ukraine are being killed by the Russian War Machine.”

India responded to the threat by saying it was being unjustifiably and unreasonably targeted, calling its Russian oil imports “a necessity,” in a statement from its Ministry of External Affairs. It also criticized the U.S. and European Union for “indulging in trade” with Russia while criticizing India for doing much the same.

The U.S. “continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals,” the statement added.

The president unveiled new tariff rates on imports from dozens of U.S. trade partners last week, ranging from a low of 10% for the Falkland Islands and others to as much as 41% for Syria. He had previously announced a 50% rate for products from Brazil related in part to its prosecution of former President Jair Bolsonaro, who is facing trial for an alleged coup attempt.

Switzerland to Pursue U.S. Talks

On Monday, Switzerland said it would extend negotiations with the U.S. past Thursday, if necessary. The country’s exports to the U.S. face a 39% tariff rate.

“Switzerland enters this new phase ready to present a more attractive offer, taking U.S. concerns into account and seeking to ease the current tariff situation,” said a statement from the Federal Council, the country’s highest executive body.

Shares in major Swiss companies, including Swatch and Roche , fell in Switzerland. Swatch’s and Roche’s American depositary receipts were up 0.6% and 0.9%, respectively.

“Our base case is that a deal will be reached with Switzerland, lowering tariffs to 15%.” UBS analysts wrote in a research note. “But if near-40% tariffs persist, the economic impact could be significant and may prompt further easing by the Swiss National Bank.”

China Welcomes Brazilian Coffee Exports

China is broadening access to its market for scores of Brazilian coffee exporters. Brazil is facing a 50% tariff on shipments to the U.S.

“China has approved the certification of 183 new Brazilian coffee companies for export to the Chinese market,” the Chinese embassy in Brazil said in a social-media post over the weekend.

The measure is valid for five years and could provide Brazil at least a partial offset from the hefty American tariff, which is set to go into effect on Wednesday.

Write to Anita Hamilton at anita.hamilton@barrons.com and Adam Clark at adam.clark@barrons.com