Oil Jumps As Trump Threatens India With ‘Substantial’ Tariffs For Buying Russian Crude

President Trump switched his attention from the domestic jobs figures to the price of oil this morning with a Truth Social post that lambasts India for their dealings with Russia:

“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.”

Then Trump made the threats:

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.

Thank you for your attention to this matter!!! President DJT

And oil prices spiked on the news…

This commentary and action by President Trump comes shortlay afterDave DeCamp reported earlier via AntiWar.com, a senior advisor to Ukrainian President Volodymyr Zelensky is calling on the US to “strangle” the Russian economy by imposing tariffs on Moscow’s trading partners, though the US measures are unlikely to hurt Russia.

“The [Russian] economy, geared for war, cannot withstand the pressure and is holding on only through the sale of energy resources,” said Andriy Yermak, the head of Ukraine’s presidential office. “It is possible to strangle the economy with secondary tariffs proposed in the USA.”

President Trump has threatened to hit countries that are purchasing Russian oil with 100% tariffs, and a bill in the Senate would impose 500% tariffs on any country that “knowingly engages in the exchange of Russian-origin uranium and petroleum products.“

Either tariff rate would have a significant impact on the US economy since China and India are major buyers of Russian oil. President Trump has already announced a 25% tariff on India and an unspecified “penalty” on the country over its trade with Russia. But Indian officials say they will continue buying Russian oil despite the US threats of further action.

In response to US threats to impose tariffs over the purchase of Russian oil, the Chinese Foreign Ministry said Beijing would “take energy supply measures” based on China’s national interests.

“Tariff wars have no winners,” said Chinese Foreign Ministry spokesman Gua Jiakum. “Coercion and pressuring cannot solve problems. China will firmly safeguard its own sovereignty, security, and development interests.”

Russia has also made clear that it’s not fazed by the US’s ultimatum to reach a deal to end the war in Ukraine by August 8 or face tariffs and other economic measures.

The deadline prompted a warning from former Russian President Dmitry Medvedev, who said each US ultimatum “is a threat and a step towards war. Not between Russia and Ukraine, but with (Trump’s) own country.”

India has indicated that it would continue buying oil from Russia despite threats by U.S. President Donald Trump.

The Indian foreign ministry said its relationship with Russia was “steady and time-tested,” and should not be seen through the prism of a third country. —Associated Press

India to defy Trump’s threats and keep buying Russian oil, government sources say https://t.co/NljrJHMed8 pic.twitter.com/ItHCFb09Rz

— The Independent (@Independent) August 3, 2025

Trump responded to Medvedev’s comments by announcing the deployment of two nuclear submarines, a highly provocative move. “I have ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that,” he wrote on Truth Social on Friday. “Words are very important, and can often lead to unintended consequences, I hope this will not be one of those instances.”

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With all that said, one wonders if President Trump – strange as it may seem – has got the tap on the shoulder from ‘Big Oil’ explaining that they need oil prices higher (not ‘high’) for ‘drill baby drill’ to succeed.