When Trump Came for Everyone With Tariffs, China Fought, Europe Flinched, Japan Bowed; India Simply Walked Away

There is a test that powerful countries administer to everyone else every few decades. It is not announced formally. There is no letter, no ceremony, no official notice. The test arrives disguised as a trade policy. You discover you are being tested only by watching how you respond.

Trump administered that test in 2025. The tariffs were the instrument. The real question underneath them was simpler and older: how much humiliation will you absorb to keep America happy?

Every major economy answered differently. The answers were more revealing than any diplomatic communiqué.

China Bled First, Then Negotiated

China did what China always does when cornered. It hit back.

The moment Trump’s tariffs landed, Beijing retaliated, hard, fast, and with surgical precision aimed at the American constituencies that hurt most. Agriculture. Soybeans. Pork. The farmers in Iowa and Kansas who had voted for the man now watching their export markets evaporate. Bilateral tariff rates escalated rapidly until both sides were effectively taxing each other’s goods at 125 per cent, a trade war in everything but name, conducted with the cold efficiency of two countries that understand leverage.

It lasted months. It cost both sides real money. And then, in May 2025, they sat down and cut a deal, tariffs rolled back to ten per cent, a 90-day truce extended in August, formalised for a full year by November.

China did not get everything it wanted. But it negotiated from a position of demonstrated willingness to inflict pain. Washington knew, going into those talks, that Beijing had already shown it could make the phone ring in congressional offices across the Farm Belt. That knowledge shaped every sentence of the agreement.

You do not get a good deal by being easy to ignore.

Canada Went Loud, Then Went Quiet

Canada’s response was emotional, immediate, and very Canadian, which is to say it was righteous, noisy, and ultimately pragmatic.

Within hours of Trump’s announcement, Prime Minister Trudeau slapped 25 per cent retaliatory tariffs on $155 billion worth of American goods. Ontario pulled every bottle of American alcohol from government-run liquor shelves. Provincial premiers held press conferences. The phrase “economic sovereignty” appeared in Canadian newspapers approximately ten thousand times in a single week.

Then, by June, Canada paused further retaliation and entered negotiations. The shelves were quietly restocked. The trade talks ground on behind closed doors, away from the cameras that had captured all the initial fury.

Canada had made its point. It had shown it was not a pushover. It had then returned to the business of being America’s largest trading partner and closest neighbour, because geography and economics do not pause for diplomatic theatre.

The noise was genuine. So was the accommodation that followed. Canada fought for its dignity and then negotiated for its interests. Both things can be true simultaneously.

Europe Built Its Weapons and Never Used Them

The European Union spent much of 2025 in a state that can only be described as armed paralysis.

Brussels prepared retaliatory lists covering nearly €72 billion of American goods. It drafted legislation activating the Anti-Coercion Instrument — a legal mechanism designed specifically for moments like this one. It threatened to go after American services, American tech platforms, American financial firms operating within EU borders. The paperwork was meticulous. The political will was not.

Europe blinked. Repeatedly. Quietly. Without ever formally announcing that it had blinked.

The reasons were not difficult to identify. European economies depend on American markets to a degree that makes genuine trade war genuinely painful. And Europe’s dependence on Washington’s military support for Ukraine, a war being fought on European soil, paid for partly with American weapons, meant that Brussels could not afford to turn a trade dispute into an alliance crisis. Trump knew this. He had always known it. The tariffs on Europe were, in part, a test of exactly that dependency.

Europe failed the test by passing on the opportunity to take it. It armed itself thoroughly and then stood very still, hoping the moment would pass.

It mostly did. The cost was invisible but real, the credibility of the threat had been spent without anything to show for it.

Japan Bent the Knee and Got a Discount

Japan’s response was, in historical context, entirely unsurprising. It notified the World Trade Organisation of its intent to suspend concessions on steel, aluminium, automobiles and parts. It made the appropriate official noises. Then it negotiated.

Tokyo’s instinct, refined across a century and a half of managing the American relationship, through gunboat diplomacy and occupation and Nixon’s triple shocks and Bush’s dinner table incident, is always to find the accommodation rather than force the confrontation. Japan reached a trade agreement setting tariffs on its goods, including automobiles, at 15 per cent. Significantly below the 25 per cent that had been threatened. Meaningfully better than nothing.

Japan conceded. Japan got a discount. Japan went home.

There is no contempt in that observation. Japan’s circumstances, 54,000 American troops on its soil, an American-authored pacifist constitution embedded in its foundational law, a security architecture built entirely around the US-Japan alliance, leave Tokyo with genuinely limited room to manoeuvre. Japan knows this. Washington knows Japan knows this. The discount was the acknowledgement that Japan had been a cooperative subject.

A discount is not the same as respect. But it is what cooperative subjects receive.

Brazil Made Speeches

Brazil’s President Lula gave several impassioned addresses about sovereignty, fairness, the rights of developing nations, and the injustice of a global trading system designed by the powerful for the powerful. The speeches were good. They were well-delivered. They contained several genuinely quotable passages.

Brazil did not fire a single retaliatory shot.

Not one.

It evaluated potential measures. It confirmed willingness to negotiate. It reserved its position. It talked loudly, at length, and carried nothing at all.

And Then There Comes India

India did not retaliate. It did not make speeches. It did not prepare retaliatory lists it never used or schedule press conferences to announce tariffs it never imposed.

It filed a WTO challenge, a legal mechanism, quiet and procedural, that signalled disagreement without escalation. It absorbed the blow. And then it got on with its own business, which turned out to be rather more interesting than anything Washington had planned for it.

When Trump publicly claimed credit for mediating the India-Pakistan ceasefire after the May 2025 conflict, India rejected the claim flatly. No US role in the military negotiations, New Delhi said. Full stop. No diplomatic softening. No grateful hedging.

When Trump claimed India had agreed to slash its duties to zero, purchase $500 billion in American goods, and stop buying Russian oil entirely, Indian authorities confirmed none of it. Oxford Economics described the claims as unrealistic. India said nothing publicly and kept buying Russian oil, which it had been doing all along, which it continued doing through February 2026, and for which it eventually received a waiver from the very Treasury Department that had spent months punishing it for exactly this behaviour.

When Trump intensified outreach to Pakistan, even as he was hitting India with 50 per cent tariffs, India noted the irony and said nothing.

When the EU came calling, India signed what European Commission President Ursula von der Leyen called the “mother of all deals” — a trade agreement delivering an estimated €30 billion in export gains for both sides, accompanied by a defence pact. Modi then signalled warming relations with China. Precisely the strategic drift that Washington’s tariff pressure had been designed to prevent was happening, visibly, in full public view.

India’s exports to the US dipped 12 per cent in the final quarter of 2025. India’s economy grew 8.2 per cent in the same period, driven by its domestic market, which is large enough to not need Washington’s permission to function.

The tariff eventually came down to 18 per cent in the February 2026 truce. Trump announced it as a triumph. India accepted it as a correction.

What the Answers Tell You

China showed that if you make the cost of the tariff high enough, Washington will negotiate. Canada showed that you can be angry and practical simultaneously. Europe showed that a threat only works if you are willing to pull the trigger. Japan showed that a century of accommodation produces a discount, not dignity. Brazil showed that rhetoric unaccompanied by action is indistinguishable from silence.

India showed something different. It showed that a country large enough, confident enough, and strategically patient enough does not need to choose between fighting and submitting. It can simply decline to play on those terms, grow its economy, sign deals with other partners, wait for the logic of geography and demography to reassert itself, and let Washington eventually arrive at the conclusion India had been sitting on all along.

Trump came for India with tariffs, public insults, selective punishment, and demands that India manage its energy policy according to American geopolitical convenience. India filed a WTO complaint, kept buying Russian oil, grew at 8.2 per cent, signed a landmark deal with Europe, and waited.

China fought. Canada shouted. Europe trembled. Japan bowed. Brazil talked.

India walked away.

And Washington eventually followed when it conceded Russian oil for India amid Iran war.

Who Is Mojtaba Khamenei? The Shadow Cleric Who Became Supreme Leader of Iran, Why Trump Already Wants him dead?

Thirty years he had been the most powerful man in Iran ever to be seen.

No speeches. No sermons. No interviews. And, even as his father was roaring away in pulpits and making a name in the history of a nation, Mojtaba Khamenei was toiling in the shadows, pushing through corridors, whispering into the correct ears, pulling the right threads that wigged the whole clockwork of the Islamic Republic without ever leaving the slightest trace of them upon it.

On Sunday the shadow got into the light.

As a successor to his father Ayatollah Ali Khamenei who was killed in a joint US-Israel attack just nine days ago, Mojtaba Khamenei is currently the new Supreme Leader of one of the most heavily armed theocracies in the world. He is 56 years old. He has been sanctioned by the US since 2019. And Washington and Tel Aviv had succeeded in a few hours after his appointment to issue a public death warrant against him.

The Man Nobody Heard Coming

Mojtaba was born in 1969 in Mashhad as the second child of the Ayatollah. He had enlisted in the Revolutionary Guard in his teens in the Iran-Iraq War, pursued theology with his father in Qom and then did something uncharacteristic of a cleric with ambitions he went off to the gears of power instead of attempting to drive them in the limelight.

He had been the gatekeeper of his father over the course of decades. He controlled access to meetings and non-access. He established relationships among the most conservative branches of the IRGC. The kind of profile that was necessary in his case was the one that worked in subterranean deliberations between generals and clerics; this was already a mighty one.

His name was familiar to Iranian people. To the majority, he had never been heard.

What they were aware of and democracy activists have been screaming years ago, was that Mojtaba was the man behind the crackdown on the 2009 Green Movement, the bloody crackdown of hundreds of thousands of Iranians who flooded the streets following a contested election. Such demonstrations were systematically suppressed and brutally. Investigators say that his fingerprints were everywhere on it.

A Vote Held Under the Gun

The process of selection said it all about what Iran is going through. As the nation was at war, its skies still reeking of Israeli attacks, members of the Assembly of Experts, senior ones, were under heavy pressure by the IRGC commanders just before the vote was taken. The individuals who objected were allowed little time to speak. Discussion was cut short. The vote was called quickly.

The outcome was packaged instantly in the tone of rebellion. One of the members of the Assembly said that the new leader was selected specifically because he was a man that the enemy hated – a literal, intentional attack on Donald Trump, who had already referred to the appointment as unacceptable before it was even official.

Iran had chosen the man that America did not want. And they would have that people know it was done on purpose.

A Warning to the World, Which Trump Delivers Not Diplomatically Dressed

Washington was not subtle in his position. A few days prior to the vote, Trump was confrontational as usual when he spoke to the ABC News that Mojtaba would not be able to remain in power without American approval, and that without it he would not last long. In another interview, he rejected the younger Khamenei saying that he even had a father who was reportedly incompetent.

Israel was equally direct. The Israeli Defence Minister was quoted saying that the appointment also placed Mojtaba an instantaneous target to be killed.

The response of Iran was not verbal but in the shape of missiles. Soon after the announcement, the Iranian state television showed footage of another strike, that is, the projectiles, which, reports said had the inscription: At Your Command, Sayyid Mojtaba.

The new supreme leader was an heir of a war. The initial move that he made was to continue fighting it.

Why This Changes Means Everything

The decision of Mojtaba Khamenei informs you about something significant where the actual power of Iran currently lies. This is not a pragmatist. This is not a diplomat. It is a man who has spent his whole career within the bosom of the IRGC, a man whose instincts were developed not in the bargaining table but in the culture of violence and the inculcate of military obedience.

The appointment, analysts pay close attention to, indicates that the hardline security establishment of Iran has solidly established itself in power, and that the off-ramp of the ceasefire or diplomacy has indeed become even even more distant.

And to that, a Bloomberg investigation published earlier this year which has implicated Khamenei in an offshore financial system that goes across London, Dubai real estate, shipping, banking and the image that comes out is of a man who knows power in all its variants.

Iran has a new supreme leader. He is younger, tougher and more imbedded in the war machine than his father was. Trump has threatened to cause consequences. Israel has promised strikes. And the man to whom most Iranians had never heard a word spoken has already responded to them both, one missile at a time.

 

Israel Strikes Iran Oil Fields, Black Rain Envelopes Tehran; Breathing Problem Pervades

Thick black clouds covered the Tehran areas on Sunday with residents claiming that when it rains, oily residue fell onto the ground following Israeli airstrikes to various oil storage and fuel distribution sites around the Iranian capital that caused massive fires, causing plumes of smoke to fill the Iranian capital.

The attacks, which were declared late on Saturday, were directed to the oil storage tanks and fuel transfer stations in Tehran and the adjacent province of Alborz, as per Iranian media. There were also large mass fires and explosions observed in various areas because the combustible tanks emitted heavy smoke which covered big parts of the city.

The inhabitants reported about a weird dark rain that made the streets, automobiles and buildings black. This was found to be due to the mixing of soot, oil particles and other pollutants of the burning facilities with rain clouds as they swept over the capital.

Governments encouraged their citizens to remain at home and wear masks because of poor air quality. The environmental officials had cautioned that the smoke had hydrocarbons and other chemicals which might irritate the lungs and eyes.

“It is raining oil in Tehran this morning after major airstrikes on oil facilities in the south and west of the capital,” CNN correspondent Frederik Pleitgen wrote on social media.

Fars, an Iranian news agency reported that in the attacks, there were at least four oil storage depots and fuel transfer centres that were hit. There were local reports that a fuel facility was hit in the strikes killing several tanker drivers.

The assault is among the most major attacks on the Iranian energy infrastructure since the present stage of the conflict commenced towards the end of the previous month. Israel has indicated that its military activities are to undermine the strategic and military power of Iran.

Oil Pivotal in Iran Vs US-Israel Conflict

The Iranian leadership has threatened to take revenge as the tension in the region keeps building up. The escalating conflict has already had an impact on shipping operations in the Strait of Hormuz which is one of the most important oil transit routes globally.

“The world is watching the Strait of Hormuz closely because any disruption there immediately sends shockwaves through global oil markets,” one energy market analyst said.

Any kind of disturbance in the Strait of Hormuz has become a global obsession due to the fact that any kind of disruption will automatically cause ripples to the oil markets in the world, as one of the energy market analysts remarked.

To the people of Tehran, though, the burning issues are the smog that stands over the city and the strange black rain that ensued the night of the explosions and fire. Officials reported that the air quality monitoring would be ongoing when emergency personnel tried to contain the fires and know the damage.

Amid Iran Tensions, US Asks India To Absorb Russian Oil Meant For China; What The Proposal Means For India?

• US suggested India absorb Russian oil waiting for Chinese refineries
• Over 100 million barrels of crude currently floating offshore
• Extra cargoes could benefit Indian refiners through discounted supply
• Move aimed at cooling global oil prices amid Middle East tensions

The United States has proposed that India reflect on absorbing over 100 million barrels of Russian oil which is already offshore to be transported to refineries in China, which Washington reckons will assist in alleviating the soaring oil prices amidst the threats of violence in the Middle East.

US Energy Secretary Chris Wright said the suggestion was part of a short-term effort by the Trump administration to stabilise energy markets unsettled by disruptions in the Middle East. Speaking in television interviews on CNN and CBS News, Wright said senior US officials had directly raised the idea with New Delhi.

“I did call up the Indians, as did Treasury Secretary Scott Bessent,” Wright said, noting that a large volume of Russian oil is currently idling at sea while waiting to be processed by Chinese refineries. According to Wright, more than 100 million barrels of Russian crude are effectively stuck in a queue offshore because of limited unloading capacity in China.

The proposal, he said, was to divert those cargoes to Indian refineries instead of leaving them anchored for weeks.

“Instead of having it wait six weeks to unload there, let’s just pull that oil forward, have it land at Indian refineries and tamp this fear of shortage of oil, tamp the price spikes and the concerns we see in the marketplace,” Wright said.

“This is simply a pragmatic step with a short time horizon,” Wright said. The US official emphasised that the outreach to India does not signal any shift in Washington’s broader policy toward Moscow.

“The United States’ policy towards Russia has not changed,” Wright said when asked whether the move contradicts Western efforts to reduce reliance on Russian energy.

Wright added that the global oil market remains fundamentally well supplied and that recent price spikes are largely driven by uncertainty rather than an actual shortage.

“The world is very well supplied with oil right now,” he said.

Tanker movement through the Strait of Hormuz, a key artery for global oil shipments, has begun to resume following disruptions linked to the Iran conflict, although traffic remains below normal levels.

“We’re nowhere near normal traffic right now, and it will take some time,” Wright said, adding that any disruption is likely to last weeks rather than months.

What It Means For India?

India has become one of the biggest purchasers of discounted Russian crude since the war in Ukraine changed the global energy trade in 2022. The Russian oil is currently taking up approximately a 1/3rd of the crude imports into India and assists Indian refiners to obtain supplies at prices which are usually lower than those of the producers found in the Middle East.

Should the Indian refiners intervene and absorb some of the oil that is already awaiting China, this may contribute to alleviating congestion in global supply chains and avoid another round of crude prices soaring. Analysts opine that more discounted cargoes may also enhance the company refining margins of companies like Indian Oil Corp, Reliance Industries and Nayara Energy, which have increased their consumption of Russian crude in the last three years.

Nevertheless, the concept is not fully unproblematic.

The refining system already used in India has the capacity to process the blend of crude grades and the high volume would require a larger refinery capacity, logistics and contracts in place. The shipping routes and insurance arrangements may also come into play especially with the complicated system of sanctions on Russian energy exports.

New Delhi has always justified its energy buying decisions with Russia by saying that it is vital to buy low-cost gas to support its economy. Indian officials have reiterated on several occasions that the country would purchase oil anywhere it could at good prices.

In the case of international markets, the diversion of cargoes that is lying offshore may assist in abating the so-called fear premium which has increased the oil prices in the recent Middle East tensions.

In the case of India, however, the scenario may provide it with another opportunity to consolidate its as one of the most versatile and opportunistic purchasers in the rapidly divided energy market.