Trump Administration Expands Trade Policy to Address Global Issues

US President Trump's trade policy is no longer limited to trade deficits. Tariffs and sanctions are now being used to link wars, Russian oil, migration, drug trafficking, nuclear programs, and even domestic policies of allied countries. This has increased uncertainty for many countries. Ultimately, the reasons why the Trump administration imposed tariffs on 10 countries, including India, are primarily these. India's purchase of Russian oil led to an additional 25 percent tariff, bringing the total burden to 50 percent. Later, there was talk of reducing it to 18 percent under an interim agreement, but the full agreement is still incomplete. In July, a new 10 percent tariff was imposed under Section 301 related to forced labor. Also, H-1B visa fees have been increased, affecting Indian IT professionals. The United States imposed tariffs on Canadian goods up to 50 percent, alleging fentanyl smuggling and illegal migration. Canada responded with retaliatory tariffs of 50 percent on US goods, which will also target the oil sector and a major missile program from September 8, 2027.