Trump’s Trade Reversals

October 25, 2025

Abhishek Vij

Since Donald Trump assumed the presidency of the United States, his statements on foreign policy and trade policy have been constantly changing. Recently, thousands of people took to the streets in almost all American cities to protest against him. Trump considers America’s tariff rates a powerful weapon and, by threatening to change them and increase them by up to one hundred percent, he warns of attacks on exports from countries ranging from Russia to India. If Trump is friendly, he will lower the tariff rates.

If he is angry, he will irrationally increase the tariff rates. Recently, when he was tempted to obtain rare minerals from China, he gave China a concession on tariff rates, but now he has increased those same tariff rates to 155 percent so that China will be intimidated into giving him the valuable minerals. The situation is exactly the same with India.

On Diwali, Trump celebrated Diwali at the White House. He congratulated Prime Minister Narendra Modi on Diwali and called him a good friend. But his stance towards India remains the same: don’t buy oil and weapons from Russia, buy them from America, otherwise, the tariff rates will be increased. He has still imposed a 25 percent penalty on India for buying oil from Russia.

Thus, the American tariff rates on India are 25+25=50 percent. Now, Trump has again changed his stance and called India his friend. He says that he has spoken to Modi and that India will now buy less oil from Russia. A week ago, the same Trump was saying that India should completely stop buying oil from Russia, otherwise, it should be prepared to face 100 percent tariff rates.

Trade talks between India and America began as soon as Trump took office. India’s effort was to ensure that the tariff onslaught that Trump was about to unleash on other countries of the world would not fall upon India. But that didn’t happen. The trade talks broke down. But now the trade rhetoric has changed again. Trump’s new statement says that India will reduce its oil purchases from Russia. Trump has withdrawn his threat to completely stop purchases. He has again expressed hope for the success of the trade talks. Now, regarding the next trade talks, Trump says that a good agreement will be reached with India. India’s stance on these trade talks is that the 25 percent tariff imposed on us should be reduced to 15 percent, and the penalties should be withdrawn. It seems that America will agree to this because sources say that India will probably allow American corn and soybean meal to be sold in Indian markets at reasonable rates. It should be remembered that this permission will not be given for wheat and rice.

But the reason India is being flexible on corn and soybean meal and getting a reduction in tariff rates is that in recent years, dairy farming and other agriculture related industries have also developed in India. The government believes that corn and soybean meal can be absorbed in these industries. Thus, a middle ground is now being sought in the trade relations between India and America: you reduce the tariffs, and we will allow you entry into the agricultural sector, specifically in the areas of corn and soybean meal. Whether the fickle-minded Trump will allow this decision to materialize or not will only be known in the next trade talks. Trump’s Trade Reversals