Tag: United States

Trump Slaps 50% Tariff on India Over Russian Oil Purchases
President Donald Trump is imposing an additional 25 percent tariff on India, lifting the total rate to 50 percent. Trump, writing in an Aug. 6 executive order, said India’s government is “currently directly or indirectly importing Russian Federation oil.”
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent,” the executive order states.
Last week, the president announced a 25 percent tariff against India, one of the largest U.S. trading partners. Additionally, India would face another penalty over its purchases of Russian energy and military equipment.
In an Aug. 5 interview with CNBC’s “Squawk Box,” he confirmed that he would increase the tariff on India “very substantially over the next 24 hours” because it is buying Russian crude oil that is “fueling the war machine.”
The new tariff rate on India is now the largest of the tariffs imposed on U.S. trading partners.
While Trump has called Indian Prime Minister Narendra Modi a “friend,” he has regularly expressed concerns about India’s trade imbalance, tariffs, and nontariff trade barriers.
Last year, the U.S. goods trade deficit with India was $45.8 billion, up 5.9 percent from 2023, according to the U.S. Trade Representative’s Office.
India has also been in the crosshairs of Trump’s targeting of the BRICS coalition, a group of emerging market countries headlined by Brazil, Russia, India, China, and South Africa.
“BRICS … is basically a group of countries that are anti the United States, and India is a member of that, if you can believe it,” he said at a July 30 press conference.
“It’s an attack on the dollar, and we are not going to let anybody attack the dollar. So it’s partially BRICS and it’s partially the trade situation.”
Despite BRICS’ years-long campaign to dethrone the U.S. dollar and embrace bilateral trade settled in local currencies, the greenback remains the dominant currency in global trade. The dollar accounts for nearly half of international payments, SWIFT data for June show.
Pressure Campaign
Trump’s announcement follows through on his threats to ratchet up pressure to end the Russia–Ukraine conflict. One strategy the Trump administration has employed is targeting countries buying Russia’s petroleum products, threatening to implement secondary tariffs.
In an Aug. 4 Truth Social post, the president stated that India is also using the Russian oil it purchases to sell it “on the open market for big products.”

“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he said.
India has defended the transactions as a means to provide the population with affordable energy since conventional supplies were diverted to Europe following the war in Ukraine.
“In this background, the targeting of India is unjustified and unreasonable,” a spokesperson for India’s foreign ministry said, adding that the government will employ all necessary measures to protect its economic and national interests.
Officials also say India is engaged in long-term oil contracts with Russia, making it challenging to break those contracts overnight.
According to the United Nations COMTRADE database on international trade, India has accelerated its imports of Russian crude oil since 2022. Last year, India purchased almost $53 billion in oil, up from nearly $49 billion in 2023.
Last week, Trump reduced his original 50-day deadline for Russia to end the war, giving Moscow 10 to 12 days.
The Kremlin criticized the White House’s campaign to force countries to eliminate trade with Russia.
Dmitry Peskov, spokesperson for the Kremlin, says India and other countries should be allowed to select their own trading partners for trade and economic cooperation.
“We hear many statements that are in fact threats, attempts to force countries to cut trade relations with Russia. We do not consider such statements to be legal,” Peskov told reporters on Aug. 5.
U.S. special envoy Steve Witkoff is in Moscow on Aug. 6, just a few days before Trump’s deadline.
August 6, 2025
This NYC Suburb Is Lowering Rents Here’s How
A new building under construction in New Rochelle, N.Y. © WSJ
About 20 miles north of Midtown Manhattan, the city of New Rochelle, NY—home to roughly 85,000 residents—has quietly rewritten the housing playbook, making it a rare example of a suburb where added supply has actually stabilized and even reduced rents. While the broader New York metro and much of the nation grapple with surging rent inflation, New Rochelle has kept rent growth to 1.6% since 2020, and rents have declined slightly from 2020 to 2023.
According to The Wall Street Journal, New Rochelle added 4,500 new housing units over the past decade, with another 6,500 in the pipeline—a 37% expansion in the city’s housing stock. This surge stands in stark contrast to many U.S. cities, where supply hasn’t kept pace with demand.
That growth isn’t just in numbers. A range of developers, anchored by RXR as master developer, have led the charge on large projects like One Clinton Park, ThreeHThirty3, and Encore, part of a $2.5 billion redevelopment effort.
City officials adopted a five-part framework starting in 2015 that paved the way for this transformation:
A form-based zoning code that specifies building size and design but allows flexibility in use. A single, generic environmental review for an entire redevelopment zone, reducing per-project red tape. A master agreement with a lead developer (RXR) managing multiple publicly owned sites. Tax and financial incentives calibrated to attract investment while protecting taxpayers.
A thorough fiscal impact analysis to address concerns around schools and municipal services.
New Rochelle officials guarantee a 90-day approval timeline for qualifying residential projects—far quicker than in New York City or neighboring suburbs.
Evidence shows these policies paid off. According to Pew Charitable Trusts, from 2017–2021, New Rochelle added housing over twice as fast as the U.S. average. Meanwhile, rents rose just 7% from 2017 to 2023, compared to 31% nationally.
Apartment List data reinforces that trend: By September 2024, New Rochelle’s median rent had fallen 3% year-over-year and stood 7.2% below the broader New York metro average.
Developers must set aside 10% of units as affordable housing, with identical features to market-rate units—an effort to promote equity and inclusion.
In highrise projects like Highgarden Tower, fully affordable buildings offer two-bedrooms for $1,800–$2,500/month, versus market rents of $4,100+ per two-bedroom. This mix has spurred transit-oriented downtown growth and pulled price pressure off older housing.
Local officials also reinvest developer fee revenues into infrastructure, food services, and down payment assistance programs to support longtime residents.
New luxury towers like Encore, which opened in late 2023, reached 95% leased by April 2025 with studio rents starting around $2,070/month, one-bedrooms at $2,615, and two-bedrooms at $4,350. These prices remain below many Manhattan equivalents and attractive for professionals pricing out of NYC.
Despite success, not everyone is thrilled. Longtime residents have voiced concerns about construction noise, loss of parking, and a changing community fabric. A local resident described new arrivals as “sleepers”—those who live but don’t fully participate in downtown life.
Investor sentiment is cautious too: At recent real estate panels, multiple brokers warned that thousands of units flooding the local market could pressure rents in the coming years—though most of that pipeline is still planned or under construction.
New Rochelle’s model—streamlining environmental reviews, standard zoning, developer partnerships, and mixed-income mandates—is drawing attention nationwide. States such as California and Oregon, and even proposals in Washington, D.C., are exploring similar federal incentives and review reforms to ease regional housing shortages.
By pushing thousands of new apartments through with predictability and speed, while preserving affordability and reinvesting in services, New Rochelle has displayed a rare suburban success story in containing rents. For city and state policymakers nationwide wrestling with affordability crises, it’s a living blueprint for how development can be part of the fix—not the problem.
August 6, 2025
Trump Has a New Opportunity to Influence the Federal Reserve
In an unfolding drama at the intersection of politics and economics, former President Donald Trump is poised to gain new influence over U.S. monetary policy. The early resignation of Fed Governor Adriana Kugler, a Biden appointee, has opened a vacancy on the Federal Reserve’s Board of Governors—just as markets are betting on a looming interest rate cut following weak labor data.
If reelected, Trump would have the opportunity to fill that seat—and later, Fed Chair Jerome Powell’s position in 2026—giving him a powerful lever to shape monetary policy, especially amid rising demand for rate relief.
Adriana Kugler resigned effective August 8, nearly 17 months before her term was set to end in January 2026. Until now, her departure marks the first vacancy on the seven-member Fed board under Trump’s second term. Her exit presents Trump with immediate appointment power, allowing him to put a likely rate-cut advocate in place well before the September rate decision.
Kugler’s early departure—unexpected for many political watchers—provides a rare opportunity amid increasingly charged discussions around Fed independence and political influence over interest rate decisions.
On August 1, the July jobs report disappointed across the board: just 73,000 jobs added vs. expectations of ~110,000, and May/June revisions that cut 258,000 jobs combined. Unemployment ticked up to 4.2%, with labor participation falling further.
The fallout was immediate: markets sharply increased the odds of a September Fed rate cut:
According to CME FedWatch, cut odds jumped from 63.3% to 75.5%, then to about 88.2%, although Powell’s hawkish remarks later pulled them back somewhat. Inflation, however, remains above the Fed’s 2% target—with headline PCE at 2.6% and core PCE at 2.8% in June—temper market enthusiasm for a cut.
At the most recent FOMC meeting, the Fed opted to hold rates at 4.25–4.50% for the fifth consecutive time. Chair Jerome Powell asserted the labor market was “broadly in balance”, but reiterated that persistent inflation and tariffs remain risks. These comments were interpreted as relatively hawkish—a stance that reduced cut odds temporarily.
Still, the economic slowdown has emboldened voices like Atlanta Fed President Rafael Bostic and dissenter Christopher Waller, who support earlier easing, arguing the labor market impact is mounting.
Trump continues to intensify pressure on Powell, calling him “too late” on rate cuts and firing criticism at the Fed’s approach.
With the vacant seat, and several others looming in the next two years (including Powell’s chairmanship in May 2026), Trump may swiftly shape the Fed’s leadership. He has already narrowed his list of potential Fed chairs to four, including Kevin Hassett and Kevin Warsh, both aligned with his earlier economic views.
Politico reports suggest Trump will avoid nominating Treasury Secretary Scott Bessent as Fed chair, favoring loyalists instead.
Financial analysts caution: while Trump may not remove Powell mid-term, he could appoint a new governor now and a new chair later—creating a slow-motion shift at the institution’s helm.
While markets rejoice at rate cut possibilities, economists warn premature easing could undermine inflation control. Bank of America and Morgan Stanley maintain that the Fed may stay on hold until 2026, pointing to strong labor metrics, rebounding consumer spending, and structural inflation risks tied to tariffs and demographics.
Meanwhile, President Trump’s dismissal of the Bureau of Labor Statistics director, accused of manipulating data without evidence, has further spooked investors about the integrity of economic reporting—a move criticized for politicizing critical statistical institutions.
Market Expectations: Futures markets have priced in nearly a 90% chance of a 25 bps cut in September, with the potential for additional reductions totaling 60 bps by year-end.
Monetary Independence at Risk: Trump’s ability to appoint new governors—including a future Chair—raises concerns about political influence over the Fed.
Economic Impact: Rate cuts would ease borrowing costs, boost equities (especially tech and growth stocks), and potentially weaken the dollar.
Long-Term Policy Direction: A Trump-aligned Fed could steer toward looser monetary policy—even in the face of inflation risks.
A rare vacancy on the Fed board—coupled with surging rate cut expectations—has given President Trump an opening to reshape U.S. monetary policy. With chairmanship up for grabs in 2026 and growing investor pressure for interest rate relief, the Fed sits at a crossroads. Under a second Trump administration, the institution that long stood aloof from politics may find itself aligned firmly with a new partisan economic agenda.
August 5, 2025
Palantir’s Success in Washington and the Resulting 600% Surge in Its Stock Price

Once dismissed as a niche Silicon Valley data-mining firm, Palantir Technologies PLTR +600.00% ▲ has undergone a dramatic metamorphosis, transforming into a central fixture in Washington’s national security and AI strategies. As its stock soared nearly 600% from early 2024 through mid‑2025, Palantir cemented its reputation as a co-equal to political insiders—and embraced the aggressive posture of the Trump era it now serves.

Once dismissed as a niche Silicon Valley data-mining firm, Palantir Technologies has undergone a dramatic metamorphosis, transforming into a central fixture in Washington’s national security and AI strategies. As its stock soared nearly 600% from early 2024 through mid‑2025, Palantir cemented its reputation as a co-equal to political insiders—and embraced the aggressive posture of the Trump era it now serves.
In early 2023, CEO Alex Karp stunned the company by announcing that Palantir was developing a next-generation Artificial Intelligence Platform (AIP)—even though no such project existed. As The Wall Street Journal recounts, Karp viewed the shift toward AI as inevitable and confidently placed Palantir at the center of it. His engineers then raced to build the product. What emerged became a centerpiece of national defense contracts and commercial integrations.
In Q2 2025, AIP’s adoption helped Palantir smash through its first $1 billion quarterly revenue—a 33% rise in profits and skyrocketing U.S. commercial business by 93% year-over-year.

Palantir’s proximity to power was turbocharged in President Trump’s second term, as the firm took over major federal contracts. It consolidated dozens of disparate deals into a $10 billion Department of Defense agreement, serviced by Palantir’s mission-grade Gotham and AIP platforms Axios reported.
This alignment transformed Palantir from tech oddball to national strategic partner. Its new posture earned comparisons to Trump himself—tough, unfiltered, unapologetically patriotic.
Palantir’s share price multiplied more than six-fold since early 2024, drawing enormous investor attention. Analyst Stephen Guilfoyle of WallStreetPit flagged the firm’s explosive growth: over 52% U.S. business growth in Q4, a 36% revenue increase, $1.25 billion in adjusted free cash flow, and profitability—even boasting 7 cents adjusted EPS. He raised his price target to a lofty $153/share, reflecting continued bullish sentiment.
The stock’s rise has outpaced major indices. In early 2025, Palantir was among the top performers in the S&P 500 and Nasdaq‑100, ending over $400 billion in market cap—surpassing giants like Salesforce and Adobe.
With the stock surging, CEO Karp executed an aggressive share selloff: 38 million shares worth roughly $1.88 billion in 2024 alone, much of it near the presidential election. He’s signaled plans to sell nearly 10 million more in 2025, indicating a continued cash-out strategy leveraging Palantir’s rally.
Despite such windfalls, critics highlight Palantir’s outsized valuation—trading at more than 200x future earnings and 80x projected revenue, per FT’s John Foley. While revenue is strong, skeptics warn the stock behaves like a meme—powered more by hype than fundamentals.
Palantir’s success rests on an ideological playbook: blend AI prowess with government proximity. The company has built a “revolving door” of personnel exchanges between Washington and its executive ranks—including figures drawn from the Pentagon, CIA, DHS, and even the UK’s NHS. That insider network helped lock in contracts exceeding $1.3 billion with U.S. defense agencies and expanded lobbying to $5.8 million in 2024.
The firm’s approach is flexible: smartly toe political lines, anticipate shifts in power, and monetize defense policymaking. Palantir’s global positioning reflects that model—growing its Washington footprint even as its commercial footprint expands.
The company’s victories aren’t immune to challenges. In February 2025, Palantir shares plunged nearly 20% after news broke that the Pentagon might cut defense spending by 8% annually for five years, threatening Palantir’s pipeline.
Moreover, critics raise alarms about ethics and bias—its close ties to ICE and surveillance applications invite scrutiny over privacy, fairness, and oversight.
Still, Palantir’s AI platform is winning new contracts beyond defense—it now serves clients like the FAA, CDC, IRS, and even corporate giants, and stands as a singular example of AI-centric growth in a sluggish tech sector.
Palantir’s journey from controversial data firm to the poster child of AI‑powered government contracting has redefined what it means to succeed in tech—the old Silicon Valley playbook of consumer apps and venture capital liquidity has been traded for political entanglement and defense scoring.
Its 600% stock run was fueled not just by AI hype, but by a deliberate embrace of political alignment and contract design. The question now is whether that trajectory can last—once the federal tide turns, or budgets tighten, Palantir’s value may be tested.
August 5, 2025
Microsoft has eliminated dozens of positions in Washington
Stock Widget
Microsoft MSFT -0.75% ▼ is laying off 40 Washington-based employees, as the company continues to trim its workforce amid record spending on artificial intelligence.

Monday’s layoffs, disclosed in a state filing, are separate from previous announcements of global job cuts. The company announced in May that it was letting go of more than 6,000 workers and made another announcement in July for an additional 9,000 employees.
Microsoft said Monday’s cuts throughout the company were very small.
In Washington, Microsoft has cut 3,160 jobs so far this year, including Monday’s layoffs.
Organizational and workforce changes are a necessary and regular part of managing our business,” a Microsoft spokesperson said in an emailed statement. “We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
The company is continuing a run of one of the largest layoffs in its history while reporting record quarterly revenues and profits. Last week, Microsoft’s fiscal year earnings stunned Wall Street, especially for its cloud and AI business.
Microsoft reported last week that it invested $88 billion over the past year to build out its AI infrastructure and plans to spend another $30 billion by the end of September.
Microsoft CEO Satya Nadella addressed this “incongruence” in a memo to employees last month.
“This is the enigma of success in an industry that has no franchise value,” he said. “Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding.
Despite the waves of layoffs, Microsoft’s head count is relatively unchanged, Nadella said, as the company prioritizes hiring in other parts of its business. Microsoft Microsoft reported that it had 228,000 employees at the end of June. the same number that it reported last year.
August 5, 2025
‘Mamdani of Minneapolis’ Highlights Growing Divide Within the Democratic Party Beyond NYC
US Rep Adriano Espaillat and NNYC mayoral candidate Zohran Mamdani attend a news conference in New York City on July 10, 2025. © Jeenah Moon/Reuters
Forget identity politics—what we’re witnessing is a full-scale ideological insurgency. The rise of Zohran Mamdani in New York City and Omar Fateh in Minneapolis isn’t a tale of diversity breaking barriers—it’s an alarm bell signaling a growing socialist push challenging the very foundations of the U.S. Constitution.
Zohran Mamdani, a self-professed democratic socialist, pulled off a political upset in June by defeating former Governor Andrew Cuomo to clinch the Democratic mayoral nomination in New York City. Despite scant executive experience, Mamdani’s grassroots machinery—backed by NYC-DSA volunteers knocking on over 1.6 million doors—delivered him a primary victory commanding 43.5% of first-choice votes, ahead of Cuomo’s 36.4% (ranked-choice results matter). He ran on a platform of fare-free buses, city-run grocery chains, childcare, rent freezes, and significantly, progressive taxation including a flat 2% tax on millionaires.
Mamdani hails from a socialist tradition aligned with figures like Bernie Sanders and Alexandria Ocasio-Cortez. Critics worry these policies undermine American constitutional principles by expanding government power over markets, property rights, and freedom of association.
In Minneapolis, Omar Fateh—a Somali-American state senator—secured the DFL’s endorsement over two-term Mayor Jacob Frey at a convention marked by opaque processes: e-voting system failures, fraudulent upgrades, and a final “hand‑badge count” decided by the convention chair. Despite procedural controversy, Fateh won over 60% delegate support, representing a brazen socialist push at local party levels.
Mayoral candidate state Sen. Omar Fateh waves to the crowd during the Minneapolis DFL convention at Target Center in Minneapolis on Saturday. © Rebecca Villagracia/The Minnesota Star Tribune
Fateh stands on the same socialist platform: rent freezes, taxing billionaires, eliminating public safety cooperation with ICE, free public college for low-income families. If implemented, these measures push Minneapolis toward socialist governance and away from constitutional limits on government power.
These parallel rises of Mamdani and Fateh aren’t isolated incidents—they’re harbingers of a broader leftward shift within the Democratic Party. According to The Wall Street Journal, they exemplify “a widening ideological divide” between establishment pragmatic moderates and insurgent socialist factions mobilized on affordable housing and Gaza solidarity.
Yet the deeper issue is not policy details—it’s the rejection of individual rights, free markets, and constitutional checks in favor of centralized planning. Both candidates’ platforms—fare-free transit, rent freezes, wealth taxation—reflect a willingness to expand government far beyond its constitutional bounds.
Fateh’s campaign volunteer (and brother-in-law) was convicted of mishandling absentee ballots in his 2020 Senate bid. While an ethics panel cleared Fateh of wrongdoing, the scandal unnerved many.
He also faced a conflict-of-interest probe over a $500,000 grant he sponsored to a nonprofit that advertised his campaign. Again, no penalties followed—only mandated financial training.
Fateh’s vocal support for abolishing the Minneapolis Police and defunding ICE, including a 2023 speech comparing GOP senators to white supremacists, raised alarm among moderates before ethical complaints were dropped.
Mamdani lacks executive leadership experience and has been criticized for muted responses to NYC shootings—raising concerns about future governance ability.
Financial and Electoral Panic Rings the Alarm
Mamdani’s win spooked Wall Street. CNBC reported hedge fund and real estate investors were “alarmed” and “depressed,” while JPMorgan CEO Jamie Dimon admitted privately that Mamdani’s policy agenda is “Marxist-ish.” Business sentiment sank as real estate markets and luxury housing felt exposed.
As New York City faces a fracturing general election (with Cuomo and Adams running as independents), and Minneapolis gears up for a must-win race—voters must decide if they support vibrant constitutionalism or disruptive socialist crackdowns on liberty.
If Fateh and Mamdani succeed, it heralds serious repercussions in 2026—shifts toward expensive entitlement schemes, defunding of public safety, and erosion of property rights. For swing states and suburban moderates, this could be electoral poison.
The ascendance of socialist insurgents like Mamdani and Fateh represents more than political upset—it’s a constitutional crisis in the making. Their policies rest on centralized control, regressive messaging, and ideological purity. America cannot remain strong if these power grabs go unchecked.
If constitutional liberties—speech, free markets, property, due process—are to survive, conservative and moderate voters must mobilize to defend realism over radicalism in the party and the nation.
August 3, 2025
Watchdog Agency Launches Investigation into Jack Smith, the Prosecutor Who Investigated Trump
In a stunning development with far-reaching political implications, the U.S. Office of Special Counsel (OSC) has officially launched an investigation into Jack Smith, the former special counsel who led the federal prosecutions of former President Donald J. Trump. The inquiry, announced over the weekend, centers on allegations that Smith may have violated the Hatch Act, a federal law that prohibits government officials from engaging in partisan political activity while performing their official duties.
The OSC, an independent federal investigative and prosecutorial agency responsible for enforcing the Hatch Act, confirmed to several news outlets—including The Hill, Fox News, and Reuters—that it is now examining complaints lodged by Republican lawmakers about Smith’s conduct during his tenure leading high-profile investigations into the 45th president. These investigations began shortly after Attorney General Merrick Garland appointed Smith in November 2022—just three days before Trump formally declared his candidacy for the 2024 presidential election.
While the OSC declined to provide specific details regarding the scope of the probe, a spokesperson stated that “appropriate steps are being taken to evaluate potential violations of the Hatch Act or other misconduct involving Mr. Smith.”
The timing of the announcement has reignited fierce partisan debate over the integrity and neutrality of the Justice Department and the role of special prosecutors in politically sensitive cases.
The Allegations and GOP Response
Leading the charge is Senator Tom Cotton (R-AR), who has openly accused Smith of wielding his prosecutorial power for political ends. In a strongly worded post on X (formerly Twitter), Cotton alleged, “Jack Smith’s legal actions were nothing more than a tool for the Biden and Harris campaigns. This isn’t just unethical—it is very likely illegal campaign activity from a public office.”
Jack Smith’s legal actions were nothing more than a tool for the Biden and Harris campaigns. This isn’t just unethical, it is very likely illegal campaign activity from a public office. Let’s take a look at just how egregiously Smith used his DOJ role to influence the election:
— Tom Cotton (@SenTomCotton) July 30, 2025
Cotton further pointed to Smith’s push for an “unprecedented and rushed” trial schedule—seeking jury selection just two weeks before the Iowa GOP caucuses—as evidence of politically motivated intent. “No other case of this magnitude and complexity would come to trial this quickly,” he said.
Other conservative lawmakers, including Sen. J.D. Vance (R-OH) and Rep. Elise Stefanik (R-NY), have echoed Cotton’s sentiments, calling for sweeping reviews of the Justice Department’s prosecutorial discretion and accusing it of being “weaponized” against political opponents.
Smith, a veteran prosecutor and former head of the DOJ’s Public Integrity Section, has firmly denied any improper conduct. In a final report issued in January 2025 before his resignation, Smith maintained that “the ultimate decision to bring charges against Mr. Trump was mine alone.”
“To all who know me well, the claim from Mr. Trump that my decisions as a prosecutor were influenced or directed by the Biden administration or other political actors is, in a word, laughable,” Smith wrote in the report.
His report detailed what he called a “throughline of deceit,” accusing Trump of knowingly spreading false claims about election fraud and obstructing a constitutionally mandated process. “Until Mr. Trump obstructed it, this democratic process had operated in a peaceful and orderly manner for more than 130 years,” he wrote.
After Trump’s victory in the 2024 presidential election, Smith stepped down from his role and ultimately dismissed charges against the president-elect, citing political and logistical barriers to achieving a conviction.
Pam Bondi Cleans House
Adding more intrigue to the already politically charged case, newly appointed Attorney General Pam Bondi fired 20 Justice Department employees who were reportedly tied to Smith’s investigations just weeks before the OSC announced its inquiry. While the DOJ has not publicly commented on the dismissals, sources told Politico and Axios that Bondi’s team is reviewing all DOJ prosecutions initiated during the Biden administration.
Bondi, a close Trump ally and former Florida attorney general, has previously criticized what she described as “a two-tiered justice system” and vowed to restore impartiality at the Department of Justice.
The Hatch Act of 1939 prohibits executive branch employees from using their official authority to influence elections or engage in partisan political activity. Violations can result in disciplinary actions including suspension, removal from federal service, or referral for criminal prosecution if warranted.
While the OSC does not have direct prosecutorial power, it can submit its findings to the DOJ’s Office of the Inspector General or Office of Professional Responsibility, or recommend sanctions to federal agencies.
Legal experts say proving a Hatch Act violation in Smith’s case may be difficult. “You’d have to show not just political impact, but political intent,” said Paul Rosenzweig, a former DHS official and senior fellow at the R Street Institute, speaking to NPR. “The threshold is very high.”
A Broader Political Battle
The investigation into Jack Smith is yet another chapter in the intensifying legal-political drama engulfing Washington, where partisanship increasingly clouds public perception of the justice system. While Democrats accuse Republicans of undermining the rule of law, the GOP sees a pattern of political targeting that must be rooted out.
On the campaign trail, Trump has repeatedly referred to Smith as “deranged” and painted his prosecution as part of a “deep state conspiracy.” Meanwhile, Democrats have accused the former president of trying to evade accountability for actions that culminated in the January 6, 2021, Capitol riot.
The OSC’s investigation is expected to unfold over the coming months, though no specific timeline has been set. Depending on the outcome, the case could either vindicate Smith—or add fuel to Republican arguments of DOJ corruption and abuse.
As 2026 approaches, and with President Trump now back in office, the results of this inquiry could reshape the public’s understanding of the relationship between law enforcement and electoral politics for years to come.
August 2, 2025
Ford’s “Made in America” Approach Backfires Amid Trump’s Tariffs
President Donald Trump’s aggressive new trade policies—designed to bolster domestic manufacturing—are hitting Ford Motor Company harder than many anticipated. Despite building roughly 80% of the vehicles it sells in the U.S. domestically, Ford is projecting a net $2 billion tariff-related drag on earnings for 2025, up from a prior estimate of $1.5 billion.
Big Three Automakers Earnings Loss – 3D Chart
Big Three to Lose $7 Billion in Earnings
Ford, GM, and Stellantis—the so-called Big Three—now expect a combined $7 billion earnings hit this year

3D column chart showing earnings losses for Big Three automakers: Ford $2 billion, GM $3.5 billion, Stellantis $1.5 billion, totaling $7 billion in losses.

Despite its domestic-heavy production footprint, Ford isn’t insulated. It reported an $800 million tariff hit in Q2, contributing to a net loss of $36 million, and revised its full‑year earnings forecast to $6.5 billion–$7.5 billion, down from previous guidance of $7.0 billion–$8.5 billion.
Made-in-America Isn’t Enough
Even though Ford produces nearly four in five U.S.-sold vehicles locally, much of its parts and materials—like steel, aluminum, and EV components—are sourced internationally. Under the White House’s new trade regime:
Foreign-made vehicle imports face new 25% tariffs, while automakers allied with USMCA countries can benefit from reduced levies as long as supplier sourcing meets content rules.
Ford continues to face steep tariffs on materials and parts—particularly aluminum and steel—which squeeze margins despite local assembly.
Ford Motor Co. CEO Jim Farley poses next to a new 2021 Ford F-150 pickup truck at the Rouge Complex in Dearborn, Michigan, U.S. September 17, 2020. © REUTERS/Rebecca Cook/File Photo
CEO Jim Farley warned the tariffs could “blow a hole in the U.S. industry” and force difficult choices in product planning and pricing strategy.
Thanks to trade agreements with the EU, Japan, and South Korea, many foreign automakers now pay only 15% tariffs, significantly less than the 25% levied on imports from Canada and Mexico or on non‑compliant parts.
Stellantis CEO Antonio Filosa noted that 8 million of the 16 million vehicles sold annually in the U.S.—made in Mexico or Canada with many U.S. components—now face higher tariffs than fully compliant imports from abroad.
Stellantis North America COO and Jeep CEO Antonio Filosa speaks during the Stellantis press conference at the Automobility LA 2024 car show, Los Angeles, California, U.S., Nov. 21, 2024. © AFP Photo
In Q1 2025, Ford’s revenue declined 5% to $40.7 billion but still beat expectations, and net income dropped from $1.3 billion to $471 million.
- Offset strategies include:
  - Transporting compliant vehicles from Mexico through bonded channels to avoid tariffs
  - Halting exports to China
  - Implementing internal cost reductions totaling about $1 billion planned for 2025
As of late July, Ford reinstated full‑year guidance, projecting $6.5 billion–$7.5 billion in adjusted EBIT, and affirmed $2 billion in tariff-related costs for the year.
Big Three Carmakers Earnings – Accurate Data
Analysts predict lower earnings at the Big Three carmakers
General Motors
Ford
Stellantis

Bar chart showing Big Three automakers’ net income from 2018 to 2026, with actual data through 2023 and analyst forecasts for 2024-2026.

A recent study estimates the entire auto industry could incur up to $108 billion in tariff costs, with the Big Three alone losing roughly $41.7 billion in 2025. Bernstein analysts forecast up to a 60% decline in free cash flow for the trio, due to rising production costs and shrinking margins.
Consumer pricing will likely rise: average new vehicle prices could increase by 4–8% by year-end, with some models seeing hikes up to $2,000, driven by imported parts tariffs and material cost inflation.
US Car Sales by Assembly Location
On average only half the cars sold in America are made there
US car sales by country of assembly % (US companies starred)
US
Canada/Mexico
Imported
0 20 40 60 80 100
Horizontal stacked bar chart showing percentage of US car sales by assembly location for different manufacturers. US companies are marked with asterisks.

Ford’s commitment to “Made in America” now looks paradoxical. The company is suffering disproportionately from a tariff regime meant to favor U.S. businesses—because its deep integration with global parts supplies exposes it to amplified cost burdens. Farley’s characterization of Ford as “the most American company with a $2 billion liability” captures the irony and urgency of the moment.
Unless Washington revises or harmonizes its trade policies—particularly with key neighbors Mexico and Canada—the pain for Ford and its peers could deepen. Meanwhile, international competitors may seize market share just as consumer prices edge upward.
August 1, 2025
The U.S. experienced a dramatic slowdown in hiring throughout the summer, impacting job growth
The U.S. labor market stumbled over the summer as job creation slowed sharply and previously reported figures were revised downward, raising fresh concerns about the momentum of the economic recovery amid rising trade tensions and policy uncertainty.
According to the Labor Department’s latest employment report released Friday, nonfarm payrolls increased by just 73,000 in July, a figure well below economist forecasts and the weakest showing since January. Compounding the disappointment, the job numbers for May and June were drastically revised—May’s gain was slashed from 144,000 to 19,000, and June’s from 147,000 to 14,000.
The three-month average gain now stands significantly below the 150,000 threshold, a sign of a cooling labor market. July’s job growth also fell short of the median estimate of 110,000 in a Reuters survey, where forecasts ranged from no change to 176,000 new jobs.
Unemployment Rate Rises as Tariff Uncertainty Bites
The unemployment rate edged back up to 4.2% in July from 4.1% in June, still within the narrow 4.0%–4.2% range prevailing since mid-2024. However, economists warned that the figure masks deeper structural issues, including a shrinking labor force due to immigration curbs and accelerating baby boomer retirements.
“We’re seeing growing anecdotal and survey evidence that employers have tapped the brakes on hiring,” said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets. “There’s policy uncertainty everywhere—tariffs, immigration, education spending, government layoffs—and it’s chilling business planning.”
The July slowdown follows a temporary hiring surge in June, largely attributed to a seasonal spike in state and local education employment. Economists now view that bump as a one-off anomaly that masked the broader slowdown in hiring.
Tariffs and Fed Policy Cast Shadows
The labor market report comes on the heels of a flurry of trade moves from President Donald Trump. On Thursday, the administration imposed steep tariffs on dozens of trading partners, including a 35% duty on many Canadian goods, just ahead of a Friday trade deal deadline. This escalation has stoked inflation fears and increased business uncertainty.
“The tariffs are now starting to bite into both margins and long-term planning,” said Michael Reid, senior U.S. economist at RBC Capital Markets. “Until firms know their cost structure, they’re hesitant to expand.”
Meanwhile, the Federal Reserve left its benchmark rate unchanged at 4.25%–4.50% on Wednesday and signaled a cautious tone on future policy moves. Fed Chair Jerome Powell acknowledged “downside risks” in the labor market but offered no hints of a near-term rate cut.
“The July jobs report is unlikely to shake the Fed out of its ‘wait-and-see’ posture,” said Gregory Daco, chief economist at EY-Parthenon. “But it will add further evidence that the labor market is gradually losing momentum.”
Financial markets, which had been pricing in a potential rate cut in September, have now pushed expectations to October or later, especially with inflation heating up from rising import costs. However, some analysts say the Fed could still be forced to act if upcoming data—including September’s payrolls benchmark revisions—reveal deeper labor market cracks.
“If it’s an ugly downward revision, the Fed will move—there is no question,” said Brian Bethune, an economics professor at Boston College.
The slowdown in job growth also arrives at a politically sensitive moment. With the 2026 midterm campaign season looming, both parties are expected to weaponize the data. Republicans are expected to double down on tariffs and “America First” rhetoric, while Democrats may lean into social safety nets and wage support.
Though not yet a labor recession, the data reflect a marked deceleration in hiring and economic activity. Businesses are navigating uncharted waters—supply chain volatility, tariff unpredictability, and geopolitical tensions—while the Fed remains on pause.
For now, job growth of 100,000 or less may be enough to maintain labor market equilibrium, given tighter immigration flows and demographic headwinds. But that lower “breakeven” threshold is little comfort to workers or businesses hoping for a rebound.
“This is not a collapse,” said Stanley. “But it’s a slowdown with no clear end in sight.”
August 1, 2025
Tsunami evacuations have been ordered in South America, but the worst risk appears to have passed for the US after a huge earthquake
HONOLULU (AP) — Fears of a devastating tsunami across the Pacific faded Wednesday after one of the strongest earthquakes ever recorded struck off a sparsely populated Russian peninsula, but communities along South America’s Pacific coast carried out evacuations and closed beaches.
Warnings in the first hours after the 8.8 magnitude quake sent people fleeing to rooftops in Japan and forced tourists out of beachfront hotels in Hawaii, snarling island traffic. One death was reported in Japan, and in Russia, several people were hurt while rushing out of buildings, including a hospital patient who jumped from a window.
A fisherman ties his boat near the shore in Veracruz, Panama, Wednesday, July 30, 2025, as a precaution due to a tsunami warning after an earthquake struck off the coast of Russia. © AP Photo/Matias Delacroix
Millions of people were told to move away from the shore or seek high ground because they were potentially in the path of the tsunami waves, which struck seaside areas of Japan, Hawaii and the U.S. West Coast but did not appear to cause any major damage.
The dire warnings following the massive quake early Wednesday off Russia’s Kamchatka peninsula evoked memories of catastrophic damage caused by tsunamis this century.
In Japan, people flocked to evacuation centers, hilltop parks and rooftops in towns on the Pacific coast with fresh memories of the 2011 earthquake and tsunami that caused a nuclear disaster.
Cars jammed streets and highways in Honolulu, with traffic at a standstill even far from the sea.
“We’ve got water, we got some snacks … we’re going to stay elevated,” said Jimmy Markowski, whose family from Hot Springs, Arkansas, fled their Waikiki beach resort before evacuation orders were lifted. “This is our first tsunami warning ever. So this is all new to us.”
A traffic jam forms in Honolulu Tuesday, July 29, 2025 as people heed a tsunami evacuation warning that coincided with rush hour following a powerful earthquakes in Russia’s Far East early Wednesday. © AP Photo
U.S. Secretary of Homeland Security Kristi Noem said the worst had passed. Later Wednesday, tsunami advisories for Hawaii, Alaska, Oregon and Washington state were canceled but remained for parts of northern California, where authorities warned to stay away from beaches and advised that dangerous currents should be expected through Thursday morning.
Experts say it’s challenging to know when to drop advisories, which signal the potential for strong currents, dangerous waves and flooding.
“It’s kind of hard to predict because this is such an impactful event and has created so many of these waves passing by,” said Dave Snider, tsunami warning coordinator for the National Tsunami Warning Center in Alaska.
Among the world’s strongest recorded quakes
The earthquake was the strongest recorded since the 9.1 magnitude earthquake off Japan in 2011 caused a massive tsunami and meltdowns at a nuclear power plant. Japan’s nuclear plants reported no abnormalities this time.
Wednesday’s quake occurred along the “Ring of Fire,” a series of seismic faults around the Pacific Ocean. It was centered offshore, about 120 kilometers (75 miles) from Petropavlovsk-Kamchatsky, Kamchatka’s regional capital. Multiple aftershocks as strong as 6.9 magnitude followed.
Russia’s Oceanology Institute said tsunami waves of less than 6 meters (20 feet) were recorded near populated areas of the peninsula.
Lava flowed Wednesday from the Northern Hemisphere’s largest volcano in a remote area of Kamchatka, the Russian Academy of Sciences’ geophysical service said.
Boats sit on the shore in Veracruz, Panama, Wednesday, July 30, 2025, after fishermen removed them from the water as a precaution following a tsunami warning after an earthquake struck off the coast of Russia. © AP Photo/Matias Delacroix
3 countries in South America lift tsunami warnings
In South America, three of the four countries with coastlines on the Pacific lifted their tsunami warnings.
Authorities in Colombia, Ecuador and Peru announced that tsunami alerts were removed. In Chile, the country with the largest Pacific coastline in South America, the government kept the alert along most of the coastline but lifted it in some areas where authorities said there was no longer a risk.
Chile’s Interior Minister Álvaro Elizalde said late Wednesday that evacuation orders remain in force in areas with alerts in place, and that schools will be closed again on Thursday.
He said a wave in one location measured 8.2 feet (2.5 meters), while in other areas they reached a height of 3.6 feet (1.1 meters).
Chile is highly vulnerable to earthquakes and tsunamis.
Hawaii downgrades to tsunami advisory
Authorities in Hawaii downgraded the state to a tsunami advisory, and evacuation orders on the Big Island and Oahu, the most populated island, were lifted.
“As you return home, still stay off the beach and stay out of the water,” said James Barros, administrator of the Hawaii Emergency Management Agency.
In northern California, tsunami waves of 3.6 feet (1.1 meters) were recorded in Crescent City, which has a history of tsunami disasters.
Even waves of just several feet high might pose a significant risk.
Source: USGS
“It might only be 3 feet, but it’s a wall of water that’s 3 feet and spans hundreds of miles. Three feet of water can easily inundate inland and flood a couple blocks inland from the beach,” said Diego Melgar, director of Cascadia Region Earthquake Science Center at the University of Oregon.
In this image taken from a video released by Russian Emergency Ministry Press Service, rescuers inspect a kindergarten damaged by an earthquake in Petropavlovsk-Kamchatsky, Russia, Wednesday, July 30, 2025. © Russian Emergency Ministry Press Service via AP
Russian regions report limited damage
In Petropavlovsk-Kamchatsky, the quake damaged a kindergarten that was unoccupied.
A video released by a Russian media outlet showed doctors at a cancer clinic on Kamchatka holding a patient and clutching medical equipment as the quake rocked an operating room.
Authorities on the sparsely populated Kuril Islands reported several waves flooded the fishing port of Severo-Kurilsk, the main city on the islands, and cut power supplies to the area. The port’s mayor said no major damage was recorded.
People take shelter on the roof of a fire station in Mukawa town, Hokkaido, northern Japan Wednesday, July 30, 2025, after a powerful earthquake in Russia’s Far East prompted tsunami alert in parts of Japan. © Kyodo News via AP
Hot weather affected Japan’s evacuations
Japan reported one death, and other people were injured or suffered heat-related illnesses during its tsunami evacuations.
A woman in her 50s died after falling from a cliffside road while driving to an evacuation center in the Mie prefecture in central Japan, Chief Cabinet Secretary Yoshimasa Hayashi said Thursday. Another 10 people, most of them in Hokkaido, were injured while heading to take shelter.
Separately, 11 others were taken to a hospital after developing symptoms of heat illness while taking shelter in the hot weather, with temperatures rising to around 40 Celsius (104 Fahrenheit) in some places in the country.
A tsunami of 2 feet (60 centimeters) was recorded in Hamanaka town in Hokkaido and Kuji port in Iwate, according to the Japan Meteorological Agency.
In Iwaki, a city in Fukushima prefecture, which was the epicenter of the 2011 tsunami and quake, residents gathered at a hilltop park after a community siren sounded and breakwater gates were closed.
Workers at the Fukushima Daiichi nuclear plant, severely damaged in 2011, took shelter on higher ground while remotely monitoring operations, the operator said.
Hours later, Japan downgraded its tsunami alert but left an advisory in place along the Pacific coast.
July 30, 2025
Federal Reserve Holds Rates Steady; Two Officials Dissent, Preferring a Cut
President Trump with Jerome Powell after nominating him as chair in 2017. © Drew Angerer/Getty Images North America
WASHINGTON, D.C. — The Federal Reserve held interest rates steady Wednesday for the fifth consecutive meeting, but signs of growing division within the central bank emerged as two officials dissented in favor of a rate cut, underscoring increasing uncertainty over the path forward amid rising geopolitical tensions and trade policy concerns.
The Federal Open Market Committee (FOMC) maintained its benchmark federal funds rate at a range of 5.25% to 5.50%, the highest level in over two decades. But for the first time in over a year, the vote was not unanimous: Dallas Fed President Lori Logan and Chicago Fed President Austan Goolsbee broke ranks, citing growing risks from weakening consumer demand and escalating tariffs on Chinese and European imports.
“The labor market remains strong and inflation has eased notably,” the Fed said in its statement. “However, the Committee remains highly attentive to inflation risks.” Yet the statement notably softened language about future tightening, opening the door to potential rate cuts if economic conditions deteriorate.
The dual dissents highlight what analysts are calling a “fraying consensus” inside the Fed, as policymakers weigh competing risks: on one hand, stubborn core inflation that has remained above the Fed’s 2% target, and on the other, a slowing economy compounded by new import tariffs that could dampen spending and business investment.
“These are not just marginal disagreements,” said Dana Peterson, chief economist at The Conference Board. “This is a fundamental debate over how much tariffs will drive inflation versus how much they will hurt growth. The balance is tricky.”
In recent weeks, the Biden administration has rolled out a fresh wave of trade penalties on strategic imports from China—particularly in EVs, solar panels, and critical minerals—and hinted at potential levies on select European goods. While designed to bolster domestic industry, the tariffs are expected to raise input costs for manufacturers and consumers.
Data released earlier this month showed that second-quarter GDP grew at a modest annualized rate of 1.2%, a deceleration from the 1.9% seen in Q1. Meanwhile, the Fed’s preferred inflation measure—the core personal consumption expenditures (PCE) index—was flat in June, holding at 2.8% year-over-year.
Although inflation has cooled significantly from its 2022 peak, officials remain divided over whether it has moderated enough to justify rate reductions. “The Fed is walking a tightrope,” said Sarah House, a senior economist at Wells Fargo. “They want to support growth, but they don’t want to repeat the mistakes of the 1970s by cutting too soon.”
Chair Jerome Powell, speaking at a press conference following the decision, emphasized that the Fed remains data-dependent but acknowledged that the case for rate cuts is growing stronger.
“If we see more evidence that inflation is moving sustainably toward 2%, and if labor market conditions continue to evolve gradually, then a policy adjustment would be appropriate,” Powell said. “But we are not there yet.”
Markets React with Caution
Federal Funds Rate Chart
Federal-funds rate target

Note: Chart shows midpoint of target range since 2008.
Line chart showing Federal funds rate target from 2000 to 2025, ranging from 0% to 7%.

Financial markets responded cautiously to the decision. The S&P 500 closed flat, while the yield on the 10-year Treasury note dipped slightly to 4.21%. Futures markets now see a 52% chance of a rate cut at the Fed’s September meeting, up from 38% last week, according to CME FedWatch data.
Investors remain on edge over the policy outlook, with many anticipating at least one rate cut before the end of the year. But the Fed’s internal disagreements signal a more complex road ahead.
“The Fed is no longer speaking with one voice,” said Julia Coronado, a former Fed economist now at MacroPolicy Perspectives. “This is the beginning of a broader debate—not just on rates, but on how the Fed should respond to trade-driven inflation and a more fractured global economy.”
All eyes now turn to the Fed’s Jackson Hole symposium in late August, where Powell is expected to outline the central bank’s evolving approach. Analysts expect the Chair to strike a balanced tone, reaffirming inflation vigilance while acknowledging the shifting economic landscape.
“Powell will try to bring the committee back toward a unified message,” said Coronado. “But that’s harder to do when growth is slowing, inflation is sticky, and trade tensions are rising.”
As the Fed grapples with its next steps, one thing is clear: The era of near-lockstep policymaking may be giving way to a period of internal debate—and a less predictable path ahead for rates, markets, and the U.S. economy.
July 30, 2025
Trump Imposes 25% Tariff on India, Hints at Penalties for Russian Oil Purchases
WASHINGTON, D.C. — The United States will impose a 25% tariff on goods from India, plus an additional import tax because of India’s purchasing of Russian oil, President Donald Trump said Wednesday.
India “is our friend,” Trump said on his Truth Social platform, but its tariffs on U.S. products “are far too high.”
The Republican president added India buys military equipment and oil from Russia, enabling Moscow’s war in Ukraine. As a result, he intends to charge an additional “penalty” starting on Friday as part of the launch of his administration’s revised tariffs on multiple countries.
Trump told reporters on Wednesday the two countries were still in the middle of negotiations on trade despite the tariffs slated to begin in a few days.
“We’re talking to India now,” the president said. “We’ll see what happens.”
The Indian government said Wednesday it’s studying the implications of Trump’s tariffs announcement.
India and the U.S. have been engaged in negotiations on concluding a “fair, balanced and mutually beneficial” bilateral trade agreement over the last few months, and New Delhi remains committed to that objective, India’s Trade Ministry said in a statement.
Trump’s view on tariffs
Trump’s announcement comes after a slew of negotiated trade frameworks with the European Union, Japan, the Philippines and Indonesia — all of which he said would open markets for American goods while enabling the U.S. to raise tax rates on imports. The president views tariff revenues as a way to help offset the budget deficit increases tied to his recent income tax cuts and generate more domestic factory jobs.
While Trump has effectively wielded tariffs as a cudgel to reset the terms of trade, the economic impact is uncertain as most economists expect a slowdown in U.S. growth and greater inflationary pressures as some of the costs of the taxes are passed along to domestic businesses and consumers.
There’s also the possibility of more tariffs coming on trade partners with Russia as well as on pharmaceutical drugs and computer chips.
Kevin Hassett, director of the White House National Economic Council, said Trump and U.S. Trade Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date.
Tariffs face European pushback
Trump’s approach of putting a 15% tariff on America’s long-standing allies in the EU is also generating pushback, possibly causing European partners as well as Canada to seek alternatives to U.S. leadership on the world stage.
French President Emmanuel Macron said Wednesday in the aftermath of the trade framework that Europe “does not see itself sufficiently” as a global power, saying in a cabinet meeting that negotiations with the U.S. will continue as the agreement gets formalized.
“To be free, you have to be feared,” Macron said. “We have not been feared enough. There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness.”
Seeking a deeper partnership with India
Washington has long sought to develop a deeper partnership with New Delhi, which is seen as a bulwark against China.
President Donald Trump, front right, gestures as he walks down the stairs of Air Force One with his grandchildren, Spencer, left, and Chloe, back center, upon his arrival at Joint Base Andrews, Md., Tuesday, July 29, 2025. © AP Photo/Luis M. Alvarez
Indian Prime Minister Narendra Modi has established a good working relationship with Trump, and the two leaders are likely to further boost cooperation between their countries. When Trump in February met with Modi, the U.S. president said that India would start buying American oil and natural gas.
The new tariffs on India could complicate its goal of doubling bilateral trade with the U.S. to $500 billion by 2030. The two countries have had five rounds of negotiations for a bilateral trade agreement. While U.S. has been seeking greater market access and zero tariff on almost all its exports, India has expressed reservations on throwing open sectors such as agriculture and dairy, which employ a bulk of the country’s population for livelihood, Indian officials said.
The Census Bureau reported that the U.S. ran a $45.8 billion trade imbalance in goods with India last year, meaning it imported more than it exported.
At a population exceeding 1.4 billion people, India is the world’s largest country and a possible geopolitical counterbalance to China. India and Russia have close relations, and New Delhi has not supported Western sanctions on Moscow over its war in Ukraine.
The new tariffs could put India at a disadvantage in the U.S. market relative to Vietnam, Bangladesh and, possibly, China, said Ajay Sahai, director general of the Federation of Indian Export Organisations.
“We are back to square one as Trump hasn’t spelled out what the penalties would be in addition to the tariff,” Sahai said. “The demand for Indian goods is bound to be hit.”
July 30, 2025