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Donald Trump threatens India with a ‘penalty’: What US history tells us about threats like this

US president Donald Trump announced a 25 % tariff for Indian goods starting from August 1, and added an unlimited “punishment” for New Delhi’s defense and energy relations with Russia, a step in line with a long history of American economic measures targeting allies who deal with American opponents.

Trump claimed, in a post on the social media platform, that India “has always bought a vast majority of their military equipment from Russia”, which is “the largest energy buyer in Russia.” He said this justifies additional punitive measures that exceed the standard tariff. Although he did not reveal the nature or size of the punishment, his language indicates a financial success linked to strategic alignment.

The United States has multiple legislative and executive tools.

Among the most important of them is the Coordinator of America through the Penal Code (CAATSA), which was approved in 2017. CAATSA enables the United States to impose sanctions on countries that purchases defense or large energy from Russia, Iran or North Korea.

India has faced CAATSA before, especially because of its acquisition of the Russian S-400 missile defense system. Although exemptions were granted before, the latest hints in Trump’s position in renewable hardness.

Other historical frameworks reflect this approach. I Iranian Penal Code and subsequent laws such as Cesada impose “secondary sanctions” on non -American companies that deal with the energy sectors or Iranian banking sectors, and often threaten exclusion from the American financial system or the appointment of companies to the list of specially specific citizens (SDN).

Even the most cruel examples stem from trading with the enemy law and the various anti -export laws, which historically enabled the ban, the freezing of assets, and the prohibition of critical technology exports to the enemy countries.

It was used during World War II and the Cold War and remains active in contexts like North Korea.

Recently, American lawmakers have pushed “secondary definitions” up to 500 % against continuous countries of energy from Russia amid the Ukraine war. India has been repeatedly named in such proposals, although no official law has recorded these sanctions.

Typical penalties can include:

  • Excluding American markets or financial systems
  • Refuse export licenses
  • Heavy definitions or duties
  • Assets freeze or prohibit American transactions

The threat of Trump’s penalty, although it is currently not specified, clearly repeat this deep American strategy of taking advantage of economic pressure to reshape foreign alliances and deter relations with opponents.

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2025-07-30 15:41:00

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