TLDR
Trump plans higher tariffs on India, linking them to oil trade with Russia.
U.S. imposes 25% tariff on Indian goods; new penalties may follow.
India’s defense of Russian oil trade prompts tariff hikes from Trump.
U.S. trade moves target multiple countries, including Canada and Brazil.
U.S. President Donald Trump has announced plans to raise tariffs on Indian products, citing India’s ongoing trade with Russia, particularly its purchase and resale of Russian oil. This move follows an earlier 25% tariff imposed on Indian exports and adds new pressure to the U.S.-India trade relationship.
Trump Links Tariff Hike to India’s Russian Oil Trade
President Trump stated on Truth Social that India continues to buy large volumes of Russian oil, then sells it on the open market. He accused the country of profiting from the conflict in Ukraine while turning a blind eye to civilian deaths.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote. “They don’t care how many people in Ukraine are being killed by the Russian War Machine.”
He added that because of this, the U.S. will be “substantially raising the Tariff paid by India.” The president did not give a timeline or specific increase but said the move was necessary due to India’s support of Russian energy flows.
Donald Trump threatening India directly to increase tariffs
Breaking: I will be substantially raising the Tariff paid by India to the US, says Donald Trump, pointing to India's Russian oil purchases
India buys oil cheap.
Sells it expensive.
Makes profit..Situation is… pic.twitter.com/7ZxyloCkRF
— Saachi (@anj_shas) August 4, 2025
Indian officials responded by defending their right to purchase oil based on market pricing and national interest. The Ministry of External Affairs said the relationship with Russia remains “steady and time-tested.”
U.S.-India Trade Relationship Faces New Pressure
Trump’s announcement is part of a broader effort to rework U.S. trade policy. Last week, he imposed a 25% tariff on Indian goods, warning that more penalties would follow if India did not reduce ties with Russia. The new tariff plan could affect key Indian exports such as pharmaceuticals, textiles, and auto parts.
U.S. Trade Representative Jamieson Greer confirmed that most of the tariff increases are already planned and are unlikely to be reversed. Trump has also recently signed new trade orders targeting other countries. Canada now faces 35% tariffs on many goods, and Brazil will see 50% tariffs on some exports, excluding a few items like orange juice and aircraft parts.
Trump has expressed frustration with both India and China for continuing to buy Russian oil. In a Fox News interview, White House Deputy Chief of Staff Stephen Miller said, “India is basically tied with China in purchasing Russian oil.” He accused India of using high tariffs on U.S. products and failing to follow U.S. immigration policy.
Global Trade Shifts and Market Reactions Follow U.S. Tariff Moves
Financial markets quickly responded to the latest tariff news. Bitcoin dropped to $114,921 after Trump’s remarks. This follows a brief rise in crypto prices earlier, when Trump announced he would nominate a Federal Reserve Governor who supports interest rate cuts.
Trump has also taken steps affecting broader global trade. South Korea agreed to a 15% tariff rate on its exports to the U.S., while Mexico received a 90-day delay on new tariffs. The U.S. will also end the de minimis exemption, meaning low-value imports under $800 will face tariffs starting August 29.
India’s Commerce Minister Piyush Goyal told Parliament that India would act in its own interest. He said the country remains committed to growth and that energy purchases will continue as needed based on market conditions.
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