Today's News: Trump Hikes Tariffs on India Over Russian Oil Purchases
The tariffs threaten to undermine the previously growing strategic partnership between the United States and India, which had been fostered as a geopolitical counterweight to China.
Photo: Eric Lee/The New York Times
Overview
Date: August 6, 2025
Topic: President Trump’s Escalating Tariffs on India Over Russian Oil Purchases
Summary: President Donald Trump announced a substantial increase in tariffs on Indian imports, reaching a combined 50%, primarily as a punitive measure for India’s continued purchases of Russian oil. This move, which includes an initial 25% tariff followed by an additional 25% for Russian oil imports, marks a significant escalation in trade tensions between the two nations. India has strongly defended its energy security needs, calling the tariffs “unfair” and hinting at potential retaliation. The tariffs threaten to undermine the previously growing strategic partnership between the United States and India, which had been fostered as a geopolitical counterweight to China.
Sources
The New York Times - India, Once America’s Counterweight to China, Is Now Facing Trump’s Wrath
NBC News - Trump hikes India tariffs to 50% for buying Russian oil
Fox Business - Trump hits India with 25% tariff over Russia oil purchases
The Washington Post - Trump raises tariffs on India to 50 percent, citing Russian oil purchases
The Wall Street Journal - S&P 500 rises; investors dig into more corporate earnings
Key Points
President Trump announced a total 50% tariff on Indian imports, comprising an initial 25% followed by an additional 25%.
The tariffs are explicitly imposed as punishment for India’s continued purchase of Russian oil, which Trump asserts is fueling Russia’s war in Ukraine.
The initial 25% tariff is set to take effect on Thursday, with the additional 25% taking effect approximately 21 days later.
India’s Ministry of External Affairs consistently stated that its oil imports are based on market factors, are essential for the energy security of its 1.4 billion people, and described the tariffs as “unfair, unjustified, and unreasonable.” India hinted at taking necessary actions to protect its national interests, including potential retaliatory tariffs.
The tariffs threaten to undermine the strategic partnership between the United States and India, which had been cultivated as a geopolitical counterweight to China.
United States Special Envoy Steve Witkoff met with Russian President Vladimir Putin in Moscow on the same day as the tariff announcement.
The relationship between President Trump and Prime Minister Narendra Modi, previously characterized by close ties and joint rallies, has shifted swiftly.
Unique Highlights
The New York Times highlights that President Trump also targeted pharmaceuticals (potential 250% tariff) and semiconductors with special tariffs, industries where American companies like Eli Lilly and Micron have made significant investments in India. It notes that India makes nearly 40% of generic drugs bought in the United States and that India’s trade in services, worth $65 billion last year, is more valuable than the total trade deficit in goods. The article also mentions the 2020 India-China border clash and the historical US wariness of Prime Minister Modi due to the 2002 anti-Muslim riots.
CNN reports President Trump’s social media post accusing India of buying Russian oil and then selling it on the open market for “big profits,” disregarding deaths in Ukraine. It notes that smartphones, including Apple’s iPhone production in India, are exempt from both new tariffs. The article provides specific trade deficit figures, stating that the United States imported $87 billion from India and India imported $42 billion from the United States last year.
NBC News provides a comparative list of countries with high US tariffs, noting India’s 50% rate would be among the highest, alongside Brazil (50%), Syria (41%), Myanmar (40%), and Switzerland (39%). It quotes President Trump telling CNBC that “India has not been a good trading partner.” The article also details Apple’s financial hit from tariffs ($800 million last quarter, predicted $1.5 billion next three months) and mentions Apple CEO Tim Cook was set to appear with Trump at the White House for an investment announcement. It highlights that India produced 44% of US smartphone imports last quarter.
Fox Business specifies the legal authority cited by President Trump in his executive order: the International Emergency Economic Powers Act, the National Emergencies Act, and section 604 of the Trade Act of 1974. It also details the mechanism established for Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Secretary of State Marco Rubio to monitor other potential violators and recommend further action.
The Washington Post clarifies that United States businesses and consumers, not foreign countries, ultimately pay the cost of tariffs. It reports White House spokesperson Taylor Rogers' statement on Apple’s expected $100 billion investment in domestic manufacturing. The article details India’s role as the top buyer of Russian crude oil since 2023 (89 million tons last year, accounting for 38% of its oil imports) and its reliance on Russia for 36% of its military arms imports. It also mentions President Trump’s recent efforts to build deeper ties with Pakistan and attempt to broker a solution on the Kashmir region, as well as the political headache these tariffs cause for Prime Minister Modi within India.
The Wall Street Journal briefly notes that the S&P 500 rose on the day of the announcement. It mentions that Secretary of State Marco Rubio met with Switzerland’s Karin Keller-Sutter, who tried to avert a 39% levy on her country. The article includes a general assessment of Trump’s tariff experiment, stating the economy hasn’t crashed, inflation has ticked up but not soared, and tariffs have brought tens of billions in extra federal revenue.
Contrasting Details
Reason for the Initial 25% Tariff: Fox Business states that President Trump announced last week that India would face a 25% tariff and “other unspecified penalties” for purchasing Russian energy and military equipment. In contrast, The New York Times implies the initial 25% tariff was part of broader efforts to reduce India’s trade barriers, with the additional 25% specifically targeting Russian oil imports. NBC News supports this by quoting President Trump saying the initial 25% was because “India has not been a good trading partner,” and then he would raise it “very substantially… because they’re buying Russian oil.”
India’s Ranking as a Trading Partner: The Washington Post identifies India as the United States' 12th-largest trading partner, based on $78.4 billion in goods exchanged from January 1 through June. However, The Wall Street Journal and NBC News both state India ranked 10th last year among United States trading partners, with The Wall Street Journal clarifying this ranking accounts for the European Union as a single bloc and total trade of $128.88 billion. While the total trade figures are broadly consistent across articles for the full year, the specific ranking differs.
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