US President Trump Announces Increased Tariffs on India

U.S. President Donald Trump announced via Truth Social on Monday, August 4, that the United States would “substantially” increase tariffs on all goods imported from India, specifically targeting its ongoing purchase and resale of Russian oil.

Trump accused India of buying "massive amounts of Russian Oil" and reselling much of it on the open market for profit, while showing “no care” for the human toll of Russia’s war in Ukraine. His administration had already imposed a 25% tariff on Indian goods starting August 1, labeling India’s trade barriers as “strenuous and obnoxious”.

A senior Trump aide on Fox News further accused India of nearly matching China as Russia's largest oil buyer, indirectly funding Moscow’s war efforts, and described India’s continued energy trade as “astonishing”.

The move arrives amid growing global economic tensions. Analysts warn the tariff announcement has rattled markets, contributing to a stock sell‑off and elevated inflation concerns, while triggering fears of fragmented global supply chains.

In India, trade officials have confirmed that New Delhi plans to continue sourcing energy from Russia despite U.S. pressure. Meanwhile, exporters are bracing for fallout, particularly in sectors like engineering goods, with projections of a $12 billion annual hit due to the tariff regime.

This latest escalation follows Trump's broader trade policy framework launched in April—referred to as “Liberation Day”—which imposed a universal 10% baseline tariff on all imports and higher country-specific duties under the International Emergency Economic Powers Act (IEEPA).

At the same time, U.S. financial markets remain nervous: following weak jobs data and fears of a prolonged trade war, equity indices have declined sharply, and investor sentiment remains volatile.

The announcement marks a significant escalation in U.S.–India trade tensions, driven by geopolitical implications of energy policy, defense ties, and global alignment.

India's strategic balancing between its energy needs and relations with both Russia and the United States is now under intense pressure, economically and diplomatically. With further details yet to emerge on the final tariff levels, all eyes are on how markets and policymakers will respond.

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