Trump threatens 'substantial' tariff hike for India as it continues to buy Russian oil

[Oil sanctions against Russia barrel barbed wire Russian flag background]
MovieAboutYou/iStock via Getty Images

U.S. President Donald Trump threatened to “substantially” raise tariffs on Indian goods, escalating tensions between the U.S. and India over India’s continued purchases of Russian oil despite Western pressure.

“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 on the social media network Truth Social. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”

He did not specify the exact hike or implementation date but suggested the move was linked to both India’s energy relationship with Russia and its trade imbalance with the U.S.

This threat comes after an initial tariff hike of 25% on Indian goods was set to begin on August 1, 2025, delaying a long-negotiated US-India trade deal.

India has firmly defended its oil imports from Russia, calling the tariff threats “unjustified and unreasonable.” Indian officials argue that India's energy imports are a matter of economic necessity, driven by global market movements following the conflict in Ukraine. India added that both the U.S. and the EU were also “indulging in trade with Russia.”

Here are some India-linked exchange-traded funds: (BATS:INDA [https://seekingalpha.com/symbol/INDA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:EPI [https://seekingalpha.com/symbol/EPI#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FLIN [https://seekingalpha.com/symbol/FLIN#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (BATS:SMIN [https://seekingalpha.com/symbol/SMIN#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NASDAQ:INDY [https://seekingalpha.com/symbol/INDY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), and (NYSEARCA:INCO [https://seekingalpha.com/symbol/INCO#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

Oil ETFs to track: (NYSEARCA:USO [https://seekingalpha.com/symbol/USO]), (NYSEARCA:BNO [https://seekingalpha.com/symbol/BNO]), (NYSEARCA:UCO [https://seekingalpha.com/symbol/UCO]), (NYSEARCA:SCO [https://seekingalpha.com/symbol/SCO]), (NYSEARCA:USL [https://seekingalpha.com/symbol/USL]), (NYSEARCA:DBO [https://seekingalpha.com/symbol/DBO]), (NYSEARCA:DRIP [https://seekingalpha.com/symbol/DRIP]), (NYSEARCA:GUSH [https://seekingalpha.com/symbol/GUSH]), (NASDAQ:USOI [https://seekingalpha.com/symbol/USOI])

ETFs to track the broader U.S. markets: (NYSEARCA:SPY [https://seekingalpha.com/symbol/SPY]), (NYSEARCA:VOO [https://seekingalpha.com/symbol/VOO]), (NYSEARCA:IVV [https://seekingalpha.com/symbol/IVV]), (NYSEARCA:RSP [https://seekingalpha.com/symbol/RSP]), (NYSEARCA:SSO [https://seekingalpha.com/symbol/SSO]), (NYSEARCA:UPRO [https://seekingalpha.com/symbol/UPRO]), (NYSEARCA:SH [https://seekingalpha.com/symbol/SH]), (NYSEARCA:SDS [https://seekingalpha.com/symbol/SDS]), and (NYSEARCA:SPXU [https://seekingalpha.com/symbol/SPXU]).

DEAR READERS: We recognize that politics often intersects with the financial news of the day, so we invite you to click here [https://seekingalpha.com/article/4802941-politics-and-the-markets-080525] to join the separate political discussion.

MORE ON MARKETS

* Double Top QQQ Euphoria Is Likely Ending [https://seekingalpha.com/article/4808558-double-top-qqq-euphoria-likely-ending]
* When Reality And Politics Bite At The Same Time [https://seekingalpha.com/article/4808494-when-reality-and-politics-bite-at-the-same-time]
* The U.S. Economy In Five Years [https://seekingalpha.com/article/4808488-the-us-economy-in-five-years]
* Defiant India says it will keep buying Russian oil despite Trump threats [https://seekingalpha.com/news/4478021-defiant-india-says-it-will-keep-buying-russian-oil-despite-trump-threats]
* SA Asks: Which stocks could be impacted by higher India tariffs? [https://seekingalpha.com/news/4477806-sa-asks-which-stocks-could-be-impacted-by-higher-india-tariffs]