Trump's tariffs take effect as US clocks strike midnight

In a post on Truth Social, Trump said, "IT'S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!"

Trump administration hailed the considerably higher tariffs that have already gone into effect, correctly noting that they have raised more than USD 100 billion in tax revenue without leading to catastrophic inflation or a recession, as some economists had feared, as per CNN.

Trump imposed a 25 per cent tariff on India as a part of the 'reciprocal tariff'. But, Indian goods could also be subject to an additional 25 per cent tariff additionally because of an executive order Trump signed on Wednesday that seeks to penalise India for purchasing oil from Russia. That second tariff is slated to take effect on August 27.

Earlier in the day, White House Trade Adviser Peter Navarro has said that the United States already has 50 per cent tariffs on Chinese goods, similar to India, but the reasoning behind them is starkly different, according to C-SPAN. Speaking to reporters, Navarro said the US wants to impose tariffs on China without hurting its own economy.

"As the boss says, let's see what happens. Keep in mind that we have over 50 per cent tariffs on China already. We have over 50 per cent tariffs on China, so we don't want to get to a point where we actually hurt ourselves. And I think I've given a really good answer to that," Navarro said, as per C-SPAN.

He explained that India was targeted with 50 per cent tariffs because of its refusal to stop buying Russian oil, which the US claims is helping fund the conflict in Ukraine.

"Let's talk first about the India tariffs, which went up to 50 per cent today. It's important to understand that the rationale for the Indian tariffs are very different from the reciprocal tariffs. This was a pure national security issue associated with India's abject refusal to stop buying Russian oil," Navarro said. (ANI)