Trump relaunches trade war: tariffs on India and warning to Europe

Punitive tariffs will come into force on 1 August. Macron calls for firmness from the EU, Giorgetti warns: ‘Risk of Italian GDP falling by up to half a point’

‘The 1 August deadline is the 1 August deadline, it remains firm, there will be no extensions. A great day for America.’ With these words posted on Truth Social, US President Donald Trump confirms the entry into force of tariffs on products imported from trading partners starting on Thursday, 1 August, ruling out any postponement.

In a direct and provocative message, Trump announced 25% tariffs on India, accusing New Delhi of maintaining ‘annoying’ trade policies and purchasing weapons and energy from Russia. ‘Even though India is our friend, their tariffs are among the highest in the world. They also buy almost all of their military equipment from Moscow. All of this is not good. India will pay 25% tariffs plus a penalty,’ said the tycoon.

In Europe, Trump’s words reignite tensions. French President Emmanuel Macron, during a Council of Ministers meeting, criticised the EU’s approach: ‘We have not been feared enough. To be free, you have to be feared.’ Macron reiterated that France will maintain a demanding and firm line in future negotiations with Washington: ‘This is not the end of the story and we will not stop here.’

The Italian government’s position is more cautious. During a question time in the Chamber of Deputies, Economy Minister Giancarlo Giorgetti explained that ‘an overall assessment cannot be made at this stage, but the agreement between the EU and the US on tariffs certainly averts a trade war.’ However, he warned that US tariffs of 15% on Europe could have an impact on Italian GDP of up to -0.5% in 2026, followed by a ‘gradual recovery.’

The global picture is therefore becoming more complicated amid trade threats, uncertain alliances and geopolitical pressures, while the European Union seeks a common strategy to contain the US’s protectionist escalation.

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(Photo: © AndKronos)