Trump will significantly raise tariffs on India, causing Indian ETFs listed in the U.S. to turn negative

India buys Russian oil, and Trump is very dissatisfied, claiming he will significantly increase tariffs to punish India.

On Monday, August 4, U.S. President Trump stated that due to India's continued purchase of Russian oil, he would significantly raise tariffs on Indian exports to the U.S., further intensifying pressure on this major trading partner.

According to CCTV News, President Trump posted on his social media platform "Truth Social" that, India not only purchases a large amount of Russian oil but also sells most of it on the open market for profit. Therefore, he will significantly increase the tariffs that India pays to the U.S.

Trump also threatened that if India continues to purchase oil from Russia, there would be more punitive measures. However, Trump's post did not specify how much the tariffs would be raised, leaving room for negotiation.

As a result of this news, the Indian ETF listed in the U.S. fell from $52.90 to $52.48 in the short term, turning from a 0.34% increase to a 0.44% decrease for the day. The Indian rupee's decline against the dollar widened to over 0.9%.

Trump accuses India of "buying Russian oil and reselling for profit"

Previously, months of negotiations between India and the U.S. failed to reach a breakthrough. Subsequently, according to CCTV News, President Trump announced on July 30 that starting August 1, a 25% tariff would be imposed on Indian goods exported to the U.S. along with other "punitive" measures. Indian Minister of Commerce and Industry Piyush Goyal reiterated in Parliament on July 31 that India would take all necessary measures to protect national interests.

Last month, Trump also threatened India on the "Truth Social" platform that if India continued to purchase Russian weapons and oil, the U.S. would impose additional punitive tariffs on top of the 25% import tariff on Indian goods. On the 1st of this month, Trump told reporters that he believed India intended to stop purchasing Russian oil. The U.S. Permanent Mission to the United Nations confirmed on July 31 that the U.S. has set an August 8 deadline to facilitate a ceasefire between Russia and Ukraine, and threatened to impose "secondary sanctions" on countries that continue to purchase Russian energy, with India being one of the main targets of pressure. However, the Modi government currently shows no signs of concession and insists on continuing to buy Russian oil.

The New York Times reported on August 2, that India has stated it will continue to import oil from Russia. On August 2, Indian Prime Minister Modi said at a rally in Uttar Pradesh that India must protect its economic interests. Indian media reported that Modi's remarks may be in response to U.S. President Trump previously calling India a "dying economy."

Reuters cited Indian government sources on the 2nd, stating that the India-Russia agreement is for a "long-term oil contract," and "it's not that simple to stop procurement overnight." Data shows that from January to June this year, India imported about 1.75 million barrels of oil per day from Russia, an increase of 1% compared to the same period last year