Trump and tariffs, two T’s, seem like the two sides of the same coin, challenging to deal with, but inevitable, in a classic all-caps rant that President Donald Trump posted last night.
“RECIPROCAL TARIFFS TAKE EFFECT AT MIDNIGHT TONIGHT! BILLIONS OF DOLLARS… WILL START FLOWING INTO THE USA!” he wrote.
In another post, Trump wrote on Truth Social, RECIPROCAL TARIFFS TAKE EFFECT AT MIDNIGHT TONIGHT! BILLIONS OF DOLLARS, LARGELY FROM COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS, LAUGHING ALL THE WAY, WILL START FLOWING INTO THE USA.”
While Trump has repeatedly claimed that other nations are “finally paying up,” tariffs are not payments made by foreign governments. Instead, they are import taxes levied on U.S. companies that bring goods into the country. His bold claim came after the 79-year-old had announced additional tariffs on Indian goods, citing India’s continued purchase of oil from Russia.
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As per The Daily Beast, a new 25% duty, which is set to take effect in three weeks, will be added on top of a separate 25% tariff that begins from August 7, 2025, effectively doubling the tariff rate to 50% on many Indian exports to the US.
Meanwhile, countries like Brazil will pay tariffs up to 40% on coffee and agricultural products, and Canada will also pay a 35% tariff on consumer goods. They then retaliated by announcing the imposition of taxes worth $20.7 billion back in April 2025.
In addition, an extra 10% on all imported goods is levied universally. Reportedly, American households expect to pay roughly $2,400 more per year due to the new tariffs. These costs will show up in everything from groceries and clothing to household electronics and automobiles. Yet, these tariffs (taxes) have gained public scrutiny. Several business groups and trade organisations have filed lawsuits challenging the tariffs.
The magic of the Trump tax agenda is that he cuts taxes — and so total revenue likely declines — but he does so in a way that still ensures 95% of Americans will actually pay HIGHER taxes. pic.twitter.com/wqAtor3N9n
— Justin Wolfers (@JustinWolfers) October 23, 2024
India has strongly condemned the move, calling it “unfair, unjustified, and unreasonable.” Despite Trump claiming that these tariffs will create a fair economic balance, economists suggest that a sudden rise will trigger slow growth in various sectors. Moreover, for middle-class families, the impact could be significant, with projected additional expenses of up to $3,800 annually.
With pre-existing taxes on cars, groceries, and other day-to-day items. Consequently, the Yale Budget Lab says that while some manufacturing sectors may see modest growth, these gains are likely to be outweighed by losses in agriculture, construction, and retail. The original tariff list was unveiled on April 2, 2025, which was also “Liberation Day.” At the time, he promised to finalise 90 new trade deals in 90 days.
So far, only a few countries have nodded to the other list, including ones with the United Kingdom, Vietnam, Indonesia, and a preliminary arrangement with China. The new tariffs on India, on the other hand, have been freshly announced.
Eternal CEO Deepinder Goyal (formerly Zomato) from India took to X and wrote that after America’s sudden tariff announcements alongside global pressure from other countries, India should collectively work towards becoming “the world’s “most unapologetic superpower.”
After US President #DonaldTrump imposed 25 per cent #tariff on #India due to Russian oil imports, #Eternal (previously Zomato) founder Deepinder Goyal(@deepigoyal) said in his post that the world reminds India of its place every few years.
➡️ The Eternal founder, who was also… pic.twitter.com/mgzRCYWg9r
— Business Today (@business_today) August 7, 2025
While Trump remains adamant with his decisions despite warnings, only time will tell if this bold move to reshape trade works as planned or if it will backfire on the administration. For many people, these tariffs will end up in higher checkout prices while shopping.
