U.S. President Donald Trump says he will ‘substantially’ raise tariffs on India over Russian oil purchases

Less than a week after he announced a 25% tariff on imports from India “plus a penalty”, U.S. President Donald Trump on Monday (August 4, 2025) once again raised the issue of India buying oil from Russia and profiting from it. He stated that he would be “substantially” raising the tariff “paid by India to the USA”. 

It is important to note that such tariffs are paid by importers in the U.S., rather than the country on which the tariffs are levied. 

“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,” Mr. Trump posted on the social network Truth Social. “They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA. [sic]” 

The U.S. President had on July 31 signed an executive order that authorised a 25% tariff on imports from India. A day earlier, he had posted on Truth Social that he would be imposing this tariff plus a penalty “because their [India’s] tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country”. 

Apart from this, he also cited India’s energy and military equipment purchases from Russia as an irritant.

Editorial | Soured relations: On Trump’s 25% tariff, ‘penalty’

Following this announcement, Union Minister of Commerce and Industry Piyush Goyal informed both Houses of Parliament that the government was “studying the implications” of Mr. Trump’s announcement, consulting all the relevant domestic stakeholders, and would “take all steps necessary to secure our national interest”.

The Hindu has reached out to the Ministry of Commerce and Industry for a response after Mr. Trump’s latest post.

The 25% tariff places India at a relative disadvantage compared to some of its competitors such as Vietnam, Indonesia, Mexico, and the Philippines. So far, Mr. Trump’s new tariffs are expected to take effect from August 7.