Crude Oil Prices Rise as Trump Targets India with 50% Tariffs

Crude oil prices went up in Asian markets on Thursday after U.S. President Donald Trump raised tariffs on India for continuing to buy Russian oil. Brent oil futures for October rose 0.9% to US$67.48 per barrel. Besides, West Texas Intermediate (WTI) crude futures went up 0.9%, reaching US$63.98 per barrel.

This move raised fears of tighter global oil supplies in the coming months. Prices were also helped by some bargain buying after oil hit two-month lows earlier this week.

How Will Crude Oil Prices Be Impacted by New Tariffs?

On Wednesday, President Trump signed an executive order to increase tariffs on Indian goods. This was attributed to India’s continued purchase of Russian oil. There’s also talk of similar tariffs being placed on China for the same reason. These tariffs could affect global oil supply if countries like India and China look elsewhere for oil.

In other words, it could push oil prices even higher in the coming months.

When Will 50% Tariffs Come into Effect?

The higher tariff on Indian goods will take effect 21 days after August 7, 2025. President Trump said the move was meant to put more pressure on Russia to stop its war in Ukraine.

Demand Concerns Still Weigh on the Market

Despite this price bump, many traders remain worried about oil demand. Recent economic data from both the U.S. and China showed weak growth, which usually leads to lower fuel use.

On the bright side, U.S. oil inventories saw a surprise drop. Data showed stockpiles fell by 3 million barrels last week, while news reports had suggested a slight increase. This gave a small push to oil prices.

Read more: Gift Nifty Flat at 24,558 on August 7, 2025: Will Indian Markets Stabilise Amid Trump’s New Tariff Push?

Conclusion

While oil prices have risen slightly, the market remains uncertain. Tariffs on major oil-buying countries like India could tighten supply. But concerns about high OPEC+ output and falling global demand still loom large.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.