August is nearly at a close and President Donald Trump’s tariff war is once again entering one of its most chaotic phases yet after two relatively quiet months in the world of tariffs.
U.S. skips out on comprehensive trade deal with India
Leaving the future of U.S.-India trade relations in flux, the Trump administration declined to lock in a comprehensive trade deal with the Indian government before Labor Day. Instead, 50% tariffs went into effect yesterday, August 27, 2025.
Originally, President Trump announced 25% tariffs on India but threatened and then imposed an additional 25% on goods from India after India declined to stop buying Russian oil – a key U.S. demand.
The tariff increase has threatened to collapse over two decades of improving U.S.-India trade relations, and weaken India’s global trade position, as Indian Prime Minister Narendra Modi has declined Trump’s recent phone calls. Some pharmaceutical and other industries are exempt from the full tariffs, though, leaving the door open to a future comprehensive trade deal.
E.U. relaxes tariffs on some U.S. goods, in a goodwill gesture amid trade negotiations.
This week, the European Union (E.U.) announced it would remove some tariffs on American-made goods imported into the European market. The move is a goodwill gesture towards reaching another, broader trade deal at some point in the next few months. The move also follows positive trade developments earlier this summer, when the E.U. and U.S. avoided an all-out tat-for-tat trade war after talks and came to an agreement to roll back broad and reciprocal tariffs.
As part of the announcement, the E.U. will remove tariffs on U.S.-made industrial exports, including agricultural imports, seafood imports, and more. The announcement is designed to give the U.S. a reason to begin rolling back tariffs on E.U. automotive exports, which have been depressed by tariffs imposed by the U.S. government.
De minimis exemption set to expire on August 29, 2025
Tomorrow, August 29, 2025, a key exemption in U.S. trade policy that is preventing higher costs from being passed on to consumers is set to expire. The loophole, called the de minimis exemption exempts goods worth $800 and under from rigorous customs policies, including increased tariffs.
President Trump eliminated the de minimis exemption earlier this summer via executive order, although a bill passed by Congress had authorized the policy to remain in place for nearly another two years. With Trump’s move, millions of consumers will now be likely subjected to higher import taxes on cheaper goods, as companies will likely pass these taxes onto consumers.
Many countries, including Japan, Australia, France, Germany, India, Italy, Spain, New Zealand, and the United Kingdom all temporarily announced the suspension of sending of many U.S.-bound packages as policies are sorted out.
At MoreThanShipping.com, we will continue to keep you posted on the state of the tariff and trade war during the second Trump presidency.
