CNBC Daily Open: Is India the first to face Trump's 'secondary' tariff on Russia?

In the frenzied run-up to Friday, Aug. 1 — the time erstwhile U.S. President Donald Trump's caller tariffs travel into effect (no much delays!) — America's large trading partners specified arsenic Japan, the European Union and now, South Korea, person travel to an statement with the country. All of them volition beryllium taxable to 15% tariffs connected U.S. imports of their goods.

But India? Not lone has determination not been a woody yet, Trump unilaterally imposed a 25% tariff connected the South Asian state — a higher-than-expected number, arsenic analysts had wide expected India to secure a favorable deal with America. Worse, the tariff volition beryllium alongside an further "penalty," which Trump said is the terms India has to wage for its subject and vigor transactions with Russia. That fundamentally sounds similar the "secondary tariff" Trump had antecedently threatened to slap connected Moscow.

In doing so, Trump's actions look to beryllium suggesting that the White House's commercialized policies is not based simply connected the equilibrium of trade, arsenic Trump is fond of bringing up, oregon adjacent however overmuch helium likes you — spot his admiration of the U.K.'s King Charles and the country's 10% tariff rate.

It's besides astir who your friends are. Essentially, Trump appears to beryllium implying that, adjacent if you are an up-and-coming influential figure, if you bent retired with the uncool kids (who bargain Russian arms), you can't beryllium with us.

Perhaps Trump tin spend to alienate allies due to the fact that the U.S. system is inactive unexpectedly strong. It expanded 3% successful the 2nd quarter, overmuch higher than the 2.3% Dow Jones estimate, and Magnificent Seven net are handily topping estimates. Much has been discussed astir the diminution of American exceptionalism, but, for now, the U.S. is inactive the queen bee.