US Tariffs on Brazil, India, Amid Rising Trade Tensions

The U.S. is set to significantly raise its average tariff rate to 11.4% in 2025, a level last seen in the 1940s, driven by the reinstatement of reciprocal tariffs from the Trump era. This includes a 50% tariff on imports from Brazil and a new 25% tariff on Indian exports, with the latter taking effect on August 27, 2025, as part of efforts to pressure India over its continued trade with Russia. President Trump has also signaled possible secondary sanctions on countries like India and China that maintain economic ties with Russia, heightening global trade tensions. While these protectionist measures have raised concerns among exporters and impacted financial markets, the U.S. has recently negotiated tariff reductions with the EU, Japan, South Korea, the UK, and Vietnam. Indian exporters are particularly worried about significant business losses and are urging government intervention. Despite initial market volatility, Indian stock markets showed signs of recovery by the close of trading.