Leonardo Morales, Senior Fellow de MSI², para FinGurú
India has become a lifeline for the Kremlin, and President Donald J. Trump is pressuring Vladimir Putin to end the war in Ukraine. On the other hand, the head of the Oval Office is attacking the powerful pharmaceutical empire in the US.
Two crucial issues are on President Donald J. Trump's agenda: a radical reduction in drug and treatment prices in the United States and ensuring that India does not undermine Washington's strategies against Russia to finally end the war in Ukraine.
On August 7, tariffs imposed by the White House on countries that refused to negotiate with North America came into effect. Many found the rate they have to pay convenient and opted to comply.
The agreement reached by President Trump and his negotiating team with the European Union, which includes the purchase of $750 billion in oil, natural gas, and other fuels, put Russia in a difficult position for the first time after it decided to invade Ukraine.
So much so that the American president confirmed a meeting with Russian President Vladimir Putin on August 15 in Alaska. The Russian leader called two of his main allies (China and India) apparently to coordinate a response to Washington's pressures.
Without sanctions starting and on the same date that the White House deadline of 10 days expired, Putin received in his office in the Kremlin Trump’s special envoy, Steve Witkoff. They talked for almost three hours, and both Moscow and Washington classified the meeting as "very productive," demonstrating the effectiveness of Trump’s firm stances and actions in adverse situations.
"I will be meeting very soon with President Putin. It would have been earlier, but I suppose there are security measures to take," Trump said during a trilateral summit with the leaders of Armenia and Azerbaijan, who just signed a memorandum of understanding.
This news comes after Putin's discussions in Moscow with Trump's special envoy, Steve Witkoff, for almost three hours.
Despite the sanctions imposed by Joe Biden's government and the European bloc itself, in 2024, the European Union imported more than 52 billion cubic meters of Russian gas. The purchase of liquefied natural gas from Moscow that year set record levels.
Among the largest importers of Russian gas are Germany, France, Spain, Italy, the Netherlands, and Belgium.
Furthermore, in 2024, the EU also acquired 710,000 metric tons of oil and derivatives from Russia. Although imports are lower than in previous years before the war, Moscow remains an important energy supplier for Europe. For these reasons, the Kremlin reacted immediately to the historic US-EU agreement.
India in Washington's Crosshairs
On the other side of the geopolitical quadrilateral is India, a historic and commercial ally of Russia and China.
Why is India now in the focus of President Trump's lens?
In the past 10 years, the great liberal press in the United States has led people to believe that this country is a "transcendental and irreplaceable" trading partner for the US. It is more so for India than for Washington, at least up until now.
Last year, Indian exports to the US reached $87 billion; however, in the opposite direction, the flow represented $41 billion in goods and another $42 billion in services.
In total, bilateral trade between the US and India hovers around $200 billion, with India enjoying a trade surplus of $44 billion with North America.
All data comes from the Office of the US Trade Representative.
"India has not been a good trading partner because they do a lot of business with us, but we do not have the same volume of business with them. We agreed on a 25% tariff, but I think I will increase that substantially. They buy large quantities of Russian oil and sell it at high profits," Trump said in a recent interview with CNBC.
The president has just imposed an additional 25% that does not include products already taxed at 50% like steel, aluminum, automotive parts, and vehicles.
The measure takes effect in less than three weeks, and its central objective is to reduce Moscow's ability to finance the war in Ukraine, which the presidential decree qualifies as "an extraordinary threat to national security and foreign policy of the United States."
This also adds to the 25% that took effect on August 7. In total, Indian exports have been taxed at 50%.
Lifeline for Russia
India has significantly contributed to becoming a salvation for Moscow's oil sales.
Of the 7 million barrels of crude a day that Russia produces, India buys two million barrels a day, making it the second-largest consumer of Russian oil after China, according to the latest official statistics published by The New York Times.
But there is more behind the oil trading between India and Russia.
The chief of staff of Ukrainian President Volodymyr Zelensky, Andrii Yermak, seized the opportunity to denounce in a Telegram message the presence of "Indian components in Russian drones" that are used "on the battlefield and against the civilian population."
India's acquisition represents nearly 30% of the total Russian crude exports. At a price differentiated from the world market. India saved $25 billion in 2024 by purchasing Russian crude.
With adjusted prices, the three largest buyers of Russian oil are in this order: China, India, and Turkey.
Since the alleged European Union boycott against Moscow after the invasion of Ukraine, China has been the main buyer of Russian energy with about $219.5 billion in oil, gas, and coal, followed by India with $133.4 billion; and Turkey with $90.3 billion. Before the war, India imported very little Russian oil.
This indicates that Russian President Vladimir Putin’s lifeline during the war with Ukraine has undoubtedly been India, the main reason Trump has put this country on his blacklist; aimed at cornering Putin to sign a peace agreement and withdraw from Ukraine.
Only in June 2025, Russia received $12.6 billion from its crude sales, despite the barrage of sanctions and financial and trade restrictions imposed by the previous government of Joe Biden and the European Union. This means that the Russian economy has hardly noticed that it is under a supposed international embargo.
The Russian economy grew by 4.3% last year, and in terms of Gross Domestic Product (GDP), it reached $2.37 trillion. In 2023, the figure was between 3.5% and 3.8%, according to the International Monetary Fund and the Central Bank, indicating an upward projection with no significant direct impact from the sanctions. Nonetheless, it faces an inflation rate of 9.4% and internal labor tensions due to the wear and tear of the war.
The White House tariffs go beyond the relevant strategy of a new order in world trade. They also represent for the US the Achilles' heel of many countries under Washington's renewed geopolitical and military strategies.
And as President Trump has reiterated, America First and Make America Great Again are not populist campaign slogans but well-conceived platforms to achieve all objectives in the so-called "golden era" of the US.
Therefore, ending the war in Ukraine and other conflicts in the world are fundamental guidelines in Trump's presidential agenda, who gave Putin a 10-day ultimatum to end the war or face severe sanctions, which extend to all countries trading with the former Soviet republic.
Fighting and Tariffs
So far, both Ukraine and Russia have hindered a definitive advance toward the end of the war, something that makes the President quite uncomfortable.
When reporters asked what message Witkoff would send to Moscow and if Russia could avoid sanctions, he replied: "Yes, of course, if they reach an agreement to stop unnecessary loss of life," responded the head of the Oval Office.
The war continues to steal a lot of work time and wear on an issue he expected to resolve in two or three weeks after taking office. But it has been extended for six months, without a clear solution in sight.
Despite US pressure, the fighting continues.
On the same day of the meeting in the Kremlin, Ukrainian authorities reported the death of two people and a dozen injured due to Russian bombings in the Zaporizhzhia region.
Meanwhile, the Russian Ministry of Defense announced the interception of 51 Ukrainian drones between August 5 and 6.
The Russian army fired 6,297 drones at Ukraine in July, a record since the invasion began in 2022, according to figures provided by Kiev.
Trump has shifted from gentle diplomacy with Putin to forceful strategies and warnings of imminent sanctions that impact its economy and weapon and ammunition production.
Nearly 60 countries have reached agreements with the US or have complied without complaint with the trade tariffs of the US administration. Others, such as India, Switzerland, Canada, and Mexico are still seeking a trade pact.
Switzerland, with a 39% tariff on its exports, 60% of which belong to pharmaceuticals, seeks an urgent agreement with Trump, who announced that he could impose up to 250% on imported medications over the next one or two years.
Mexico, which wants to negotiate an agreement with Trump, is currently enjoying a grace period granted to President Claudia Sheinbaum, as the Aztec country is a priority trading partner and neighbor of the US. Canada, with a 35% tariff, claims it will continue to discuss possible alternatives to lower that tax rate. Brazil will have to pay 50% due to its political harassment.
Trump Attacks the Pharmaceutical Empire
Among the most significant points on Trump's current agenda is the price of all medications that are imported or mostly manufactured in the US with raw materials from abroad, which are finally sold to Americans at exorbitant values.
Over the last 30 years, especially, Americans have suffered like no one else from abusive prices for medications, treatments, and health insurance.
In many cases, "the value of the product exceeds 10 and 15 times the price of that same medication or treatment in any other industrialized country." "That's inconceivable," noted the White House in a statement.
Americans, who make up 5% of the global population, have been the cash cow for pharmaceuticals and insurers. They pay 75% of the profits of the pharmaceutical industry, and no other president, except Trump himself during his first term, has radically opposed this empire.
The big pharmaceutical companies and laboratories have funded campaigns at all levels in both political parties (Republican and Democrat) to avoid regulations, reforms, and systematically lobby for significant price hikes with little federal restraint.
For this reason, Trump has used his presidential power above interests and bureaucracy and addresses the problem with the vision it deserves: a severe national crisis in the healthcare system. He has already proposed an initial reduction of 59%, but seeks reductions of 200% and more. And for this, he has warned of authorizing massive imports from Canada and other countries with a portion of the cost of the medications sold today in the US.
A cancer treatment in the US costs between $10,000 and $12,000, while in Europe - the same treatment - it costs between $2,000 and $2,500. Insulin without medical coverage (300 dollars) costs 30 dollars in Germany. And so forth, an extensive list.
Among the extremely high cost of health insurance from Obamacare to the rest, American patients have become trapped victims of big pharmaceuticals, hospitals, clinics, and insurers.
According to the Consumer Financial Protection Bureau (CFPB), more than 100 million Americans and almost 30% of households have medical debt, but the figure looks questionable and could be higher. Many have had to max out their debts to afford the high insurance and drug or treatment costs.
More than two-thirds of those individuals believe that their life has become a nightmare, without access to credit or loans due to enormous health debts, which prevents them from buying a home or starting a business, to name a few examples.
President Trump is determined to firmly tackle one of the many facets that make up the hardships of tens of millions of people who live to pay housing and ever-increasing costs of the controversial healthcare system.
Trump warned large pharmaceutical companies that if they do not lower the abusive prices of medications for Americans, they will face serious consequences.
In letters to 17 major pharmaceutical companies, Trump called for joint work with his administration to establish urgent changes within 60 days. They have until September 29 to commit to doing so.
"If they refuse to act, we will deploy all legal and other tools in our arsenal to protect American families from ongoing abusive pricing practices of medications."
The Ultimatum
The occupant of the White House signed an executive order to [complete the digitization of the healthcare system] and facilitate patients' rapid access, in addition to seeking the most effective solutions within the -long-questioned- healthcare system.
The so-called digital health ecosystem consists of using applications so that patients can deposit their personal information and medical records in centralized banks.for quick access.
Trump called for collaboration from about 60 technology and artificial intelligence companies to complete the project as soon as possible, which aids in the monitoring and diagnosis of chronic diseases.
The White House is addressing the price issue both domestically and internationally.
The Republican leader said in early July that he would "impose a 200% surcharge if production is not repatriated to U.S. territory."
"Initially, we are going to impose a small tariff on pharmaceuticals, but within a year, a year and a half at most, it will rise to 150%, and then to 250% because we want pharmaceuticals to be manufactured in our country," Trump told CNBC.
The levies on the pharmaceutical industry are central topics in the negotiations between Switzerland and the United States.
The Swiss president, Karin Keller-Sutter, and her Minister of Economy, Guy Parmelin, are now trying to reduce the 39%, which is much higher than the rate applied to European Union products (15%).
Trump does not seem satisfied with Keller-Sutter's intentions.
The president "is very nice, but she did not want to listen. So far, they have hardly paid tariffs. We have a deficit of $41 billion, and they want to pay 1%," Trump insisted during the interview with CNBC.
"They are getting rich off the pharmaceutical industry and manufacturing our medicines in China, Ireland, and other places," complained the President, who is likely not to give in much when it comes directly to the financial and physical health of Americans.
Sources: Daily News, AFP agency, reports from the White House and the Department of Commerce, The Washington Post.
Leonardo Morales is a veteran journalist and editorial leader with over 30 years of experience in political and economic reporting in the Americas. A graduate of the University of Havana with a degree in journalism, Morales began his career in 1992 at CMHW Radio in central Cuba.
In 2003, Morales joined The Miami Herald and El Nuevo Herald, where he served as an editor for nearly 16 years. Specializing in U.S. and international politics and economics, he directed coverage of events and major occurrences. He also served as the principal editor of the 36-page Bloomberg supplement of El Nuevo Herald, where he provided in-depth economic reporting and analysis. Simultaneously, he worked as a news producer and writer at Univisión, one of the leading Spanish-language networks in the United States.
In 2020, Morales was appointed editor of U.S. Politics and Economics at Diario Las Américas, collaborating in both the weekly print edition and the digital platform. In the last five years, he has written hundreds of investigative articles and analyses, widely quoted by national and international media. His reports have become a reliable source for commentary on radio and television, as well as for academic and political debates on economic and political trends.
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