Tariffs, Trump to pharmaceutical companies: 'Drop prices or sanctions'

US President Donald Trump has called Russia and India, an ally of his country, 'dead economies', indicating that his threat to increase tariffs on New Delhi will now be implemented. In a social media post published at midnight local time yesterday, Trump said: 'I don't care what India will do with Russia. They can take down their dead economies together as far as I'm concerned." "We have done very little business with India," he added, "their tariffs are too high, among the highest in the world. Similarly, Russia and the US do almost no business together. Let's keep it that way." The statement on Truth Social followed Trump's announcement yesterday that India will face tariffs of 25%, while also announcing an unspecified 'penalty' for New Delhi's purchases of Russian arms and energy. In neither announcement did he give any indication of the penalties that would be imposed for India's continued trade with Russia, which is under massive US and Western sanctions for its invasion of Ukraine. On Tuesday, Trump had said the US would impose further sanctions on Russia in 10 days, or by the end of next week, if it did not take steps to end the three-year war.

Previously, it had threatened that the new measures could lead to 'secondary tariffs' against Russia's remaining trading partners, such as China and India. Such a decision would have further stifled Russia, but would also have entailed the risk of significant international disruptions. The warning was mocked by Dmitry Medvedev, former Russian president and key ally of current leader Vladimir Putin, who responded that Trump was issuing a 'theatrical ultimatum' and that 'every new ultimatum is a threat and a step towards war'. In the midnight post, the US president harshly attacked Medvedev, calling him "the failed former president of Russia, who thinks he is still president, and should watch what he says." "He is entering very dangerous territory!" warned Trump. The 25 per cent tariffs on India would be slightly lower than those announced in April, but are higher than those of other Asian countries, which have preliminary trade agreements with Washington. India, the world's most populous country, was one of the first major economies to engage the Trump administration in broader trade negotiations. But, six months later, Trump's radical demands and India's reluctance to fully open up its agricultural and dairy sectors have so far prevented New Delhi from sealing a deal.

Donald Trump announced that he had agreed with the president of Mexico, Claudia Sheinbaum, 'to extend, for a period of 90 days, the same agreement,' the US president explained, 'that we had in place for the last short period. That is, that Mexico will continue to pay a 25 per cent tariff on fentanyl, a 25 per cent tariff on automobiles, and a 50 per cent tariff on steel, aluminium, and copper'.

Switzerland is awaiting the decision on the extent of the tariffs that US President Donald Trump's administration will impose on Swiss goods crossing the Atlantic from tomorrow, 1 August.

Last 2 April, on what the tenant of the White House called Liberation Day, Trump had set a surcharge of 31% for goods made in Switzerland. But then he had temporarily reduced the rate to 10%. The uncertainty in Switzerland on the eve of National Day is total and the suspense increases as the deadline approaches.

Listen to the Macro Podcast

US President Donald Trump said in a post on Truth Social that he will meet with the delegation of South Korean politicians dealing with trade negotiations with the US this afternoon. Trump said he is "interested in learning" what counterproposal the Asian country intends to put forward.

"Similarly, other countries are making offers for reduced tariffs. All of this will help greatly reduce our trade deficit," Trump added, announcing that a "full" report of all negotiations will be announced soon. Tomorrow, the tariffs policy imposed by Trump is expected to take effect as countries rush to negotiate treaties that are convenient for their country.

The tariffs announced by Donald Trump towards Europe risk putting '150,000 jobs at risk, from north to south'. Thus to Adnkronos, Pasquale Lampugnale, vice-president of Confindustria Piccola Industria and ceo of Sidersan. 'A hard blow to exports,' he emphasises, as Italy 'is the second largest manufacturing country in Europe, has a value of exports of 650 billion, of which 65 billion to the United States. This tax put on our Italian products potentially reduces exports by up to 20%'. "There is no sector that is exempt from this issue. It is a hard blow for large and small companies that are grafted into large industrial supply chains, and that directly and indirectly also live off exports,' he concludes.

Further reading

Confindustria-unions: dialogue on safety at work, tariffs and industrial policy

30 July 2025

South Korean President Lee Jae-myung has been keen to present the trade agreement reached in Washington with the United States as a success for Asia's fourth largest economy, at least because it removes uncertainty from a strongly export-oriented production system, but for the new South Korean leader, the still-unformalised agreement opens up complex perspectives that have yet to be defined.

In the background of the agreement, there remain open and complex issues, starting with that of the security costs of a country that has to juggle in one of the most complex regions of the world, in the face of the growing demands of US President Donald Trump, who is demanding a sharp increase in Seoul's contribution and tends to flirt with the North Korean regime.

The US collected more revenue from tariffs in the first six months of 2025 than in all of 2024, according to US Treasury data obtained by Afp. In total, revenue in the first six months exceeded $87 billion, compared to nearly $79 billion in 2024, according to monthly data through the end of June, updated yesterday, which show a significant increase from April 2025, when Donald Trump launched his broad-based trade war.

US Treasury Secretary Scott Bessent expressed confidence about a trade agreement with China. "I think we have the basis for an agreement," Bessent said during an interview with Cnbc. "There are still some technical details to be worked out on the Chinese side. I am confident that an agreement will be reached, but it is not 100 per cent finalised yet," he said. Bessent, who gave no details on the deal, stressed that he had not yet discussed the issue with President Donald Trump, pointing out that the two sides had been negotiating for two days in talks that he described as "tough". "The Chinese are tough negotiators. We are tough too," he said.

"The EU and its member states have the sovereign right to legislate on economic activities in Europe, including digital infrastructure. Last year in February we published the white paper" on the dossier and "we believe that imposing a network tax" on digital, the so-called fair share, i.e. the fair contribution that Big Tech should pay for the use of networks, "is not a viable solution". This was said by an EU Commission spokesman, when asked about the inclusion of digital in the EU-US tariffs agreement. "It is important to clarify that this exemption would not only apply to US companies," he added.

Spreads at their lowest, stock exchanges in good health and the euro in search of an identity, but able to give European companies a breather as it slows down.

Two days after the much-discussed agreement on the tariffs reached between Europe and the United States, the market is trying to take stock and turn the page after a prolonged period of extreme uncertainty, but certainly not negative for financial investments, coinciding with Donald Trump's return to the White House last January.

"Tariffs are making America big and rich again. They have been successfully used against the United States for decades and, together with stupid, pathetic and dishonest politicians, are having a devastating impact on the future, and even the survival of our country. Now the trend has completely changed and America has successfully countered this onslaught of tariffs used against it'. US President Donald Trump writes this on his social Truth. "A year ago, America was a dead country, now it is the hottest country in the world. Congratulations to all!" adds Trump.

The joint EU-US statement on the trade agreement made in verbal form last Sunday in Turnberry, Scotland, by Ursula von der Leyen and Donald Trump, which is expected tomorrow, might come not tomorrow, but later. The possibility is explicitly contemplated by EU Trade Commission spokesman Olof Gill, during the press briefing in Brussels, which is held twice a week during the summer break. EU and US negotiators, Gill says, "are working, as agreed, to finalise the joint statement, building on the agreement reached between President von der Leyen and President Trump. We will communicate a more precise timeline when it is known. In the event that more time is needed to finalise the joint statement, after 1 August, the EU has a clear expectation that the US will implement the agreed 15% across-the-board tariffs and exemptions to the 15% duty ceiling outlined by President von der Leyen last Sunday' starting tomorrow. This means, he continued, 'that from tomorrow we will have the immediate tariffs relief that we have worked so hard to achieve. And, therefore, we will have a much stronger position in terms of stability and predictability for EU businesses and consumers. The US has made these commitments: now it is up to the US to implement them, the ball is in their court. Negotiations for further exemptions continue,' he concludes.

"We're moving forward with China, we're doing well with China, I think we're going to do very well." US President Donald Trump told reporters during an event in the Roosevelt Room, West Wing of the White House, adding that he expects to reach "a very fair agreement" with Beijing, which has rejected US tariffs. "We're moving forward with China, we're doing well with China, I think we'll be fine. We are perfectly in line. I think we're going to reach a very fair agreement with China,' Trump said.

"The answer is absolutely no". This is what European Commission Trade Spokesman Olof Gill says during the daily press briefing, when asked whether there is room for negotiation, in the context of the upcoming EU-US joint statement, to include the digital tax.

France intends to ''work'' to obtain exemptions on tariffs imposed by the United States also in the field of health, according to the deputy minister responsible for trade, Véronique Louwagie. Interviewed by Sud Radio, the government official asks rhetorically ''whether everything is already settled? The answer is no,' Louwagie notes, adding: ''Now we have to work on exemptions, on special cases. For example, aeronautics will be exempted, but there are also other sectors we have to work on'. ''France intends to make its voice heard,'' Louwagie warns, evoking ''everything that can protect our French companies, whether it is the wine sector, but also the health sector for which there may be exemptions, pharmacy, the chemical sector, the agri-food industry...''.

For steel, 'I don't think the new quota system will be operational by tomorrow. We are working on it and our intention is to have something up and running as soon as possible'. So says European Trade Commission spokesman Olof Gill at the daily press briefing. The sector is currently subject to a 50 per cent tariffs, while the agreement foresees the introduction of a tariff quota system in the future, linked to historical trade levels.

Further reading

Tariffs, EU-US agreement: historic pact for von der Leyen and Trump. Base tariff at 15 per cent

28 July 2025

"The European Commission remains determined to reach and secure the maximum number of exemptions" on US tariffs "also for traditional products such as wines and spirits", but "we do not expect wines and spirits to be included among the first group of exemptions announced by the US tomorrow. Therefore this sector, like all other economic sectors, will be subject to the 15 per cent". This was said by a European Commission spokesman during the press briefing.

Further reading

Tariffs are already being felt before they are implemented: this is why GDP is slowing down

30 July 2025