Global Tariff War News: Donald Trump initiates trade talks with India, Israel, and Vietnam after enforcing a 10% tariff on global imports. India reviews impact as economists warn of slower growth. Read the full update.
Washington/Delhi | April 5, 2025 – In a dramatic turn on global trade policy, former U.S. President Donald Trump has initiated high-level talks with India, Vietnam, and Israel following the enforcement of his new 10% baseline tariff on imports. The move, which came into effect at 12:01 a.m. ET on Saturday, marks a bold shift in the United States’ post-WWII trade strategy — potentially triggering a chain reaction across major economies.
According to CNN, Trump is in constant contact with top representatives from India, Vietnam, and Israel, aiming to negotiate trade agreements that could soften or reverse the tariff impact before steeper levies kick in next week on goods from 57 key trading partners.
Trump’s Post Sparks Global Reactions
In a social media post, Trump claimed that Vietnamese Communist Party General Secretary To Lam has shown willingness to reduce tariffs to “zero,” provided a mutual trade deal is finalized.
“This could be a model of what’s possible,” a source familiar with the talks told CNN. “If these nations step up with fair trade proposals, there’s room for flexibility.”
Global Tariff War News: India’s Tariff Adjusted, Dialogue Ongoing
The Trump administration has revised its proposed tariff rate for India, reducing it slightly from an initial 27% to 26%, following diplomatic backchannel discussions. This comes after Trump labeled India’s trade practices “unfair” despite calling Prime Minister Narendra Modi a “close ally.”
India’s Commerce Ministry confirmed that it is “carefully reviewing” the implications of Trump’s tariffs. Officials are currently engaging with exporters and trade bodies to assess the long-term impact — and identify new market opportunities in light of the U.S. policy shift.
“We’re in the process of evaluating the overall exposure and preparing sector-specific mitigation plans,” said a senior government official.
Economists Warn of Slower Growth
Meanwhile, India’s economy is showing signs of stress. The growth rate is expected to dip to 6.5% — a four-year low — for the fiscal year ending March 31, 2025. Analysts attribute the slowdown to high inflation, tight liquidity, and strict RBI norms that have restricted personal loan and credit card growth.
However, there is a silver lining. Since Governor Sanjay Malhotra took charge of the Reserve Bank of India in December, the central bank has moved swiftly to ease liquidity conditions. Regulatory tightening has also been temporarily put on hold to support economic momentum.
A Historic Move
Trade experts say Trump’s blanket 10% tariff is nothing short of a “once-in-a-generation” shift in U.S. trade policy.
“This is the single biggest trade action of our lifetime,” said Kelly Ann Shaw, former White House trade advisor and current lawyer at Hogan Lovells. “It signals the complete rejection of multilateralism in favor of bilateral pressure tactics.”
What’s Next?
With negotiations ongoing and tariff deadlines looming, all eyes are on how India, Vietnam, and Israel respond. A successful deal could pave the way for recalibrated trade relationships — or escalate tensions further if talks break down.
More Stories
Kartarpur Corridor Amid Rising Tensions: Will Sikh Pilgrims Still Be Allowed to Cross?
Amit Shah Urges Chief Ministers to Identify and Deport Illegal Pakistani Nationals
Medha Patkar Arrested in Defamation Case Filed by Delhi LG VK Saxena: A Legal Battle Rages On