Rupee Slides After Trump Threatens India Over Russia Trade

President Trump is threatening a 25% tariff on India, plus penalties, starting August 1st. He is specifically angered by India's continued purchase of discounted oil from Russia, especially given the ongoing conflict in Ukraine. Trump also criticized India's historically high tariffs and stringent trade barriers, and its significant military equipment purchases from Russia. India is a large buyer of Russian energy, alongside China, at a time when international pressure is mounting on Russia. This tariff threat comes as India and the US are in negotiations for a bilateral trade deal, with an interim agreement hoped to provide relief from potential US import duties. India had been seeking a better tariff rate than previously offered to other countries. The news has already caused selling pressure in equity futures and a decline in the Indian rupee. Indian officials are awaiting official word from the White House regarding the exact tariff levels. The duration of this market weakness remains uncertain due to the influx of economic news.