Trump’s new 25% tariff on Indian imports, raising the total to 50%, targets India’s Russian oil purchases, escalating US-India trade tensions.
A new Executive Order has been signed by President Donald J. Trump, which imposes a 25% tariff on commodities imported from India. The administration’s decision is in response to India’s ongoing direct or indirect acquisition of Russian energy, which it regards as a threat to U.S. national security and foreign policy objectives.
Trump tariffs further exacerbate the U.S.-India trade war over Russian oil links
This new 25% tariff is in addition to prior economic measures already in effect, as stated in the published White House statement. The new action builds upon Executive Order 14066, which was implemented in 2022 and prohibited the importation of crude oil and petroleum products of Russian origin into the United States.
This action validates Trump’s earlier declaration that India’s tariffs will increase this week. The administration has now identified India as the first country it is targeting, as it continues to support Russia’s energy industry through trade.
The action significantly changes the ongoing trade dispute between the United States and India. The new duty will be imposed on all Indian-origin products that enter the United States on or after September 17, 2025.
It excludes products that have been withdrawn or are currently in transit before that date. The tariff is classified as an “ad valorem” duty, which means that it is calculated based on the value of the products and is imposed in addition to any existing import charges, as per Trump.
“Russian Federation oil” is defined by the Executive Order as any petroleum product that is extracted, refined, or exported from Russia. Indirect importation encompasses purchases routed through intermediaries or third countries, provided the oil can be reasonably traced back to Russia.
Additionally, exemptions to the new tariffs are delineated in Trump’s statement. Items that have been designated for domestic status under 19 CFR or have been granted protection under other trade regulations are excluded. The order grants key officials extensive implementation authority.
This group comprises the Secretaries of State, Treasury, Commerce, and Homeland Security. U.S. Customs and Border Protection will conduct enforcement.
The crypto market was not impacted by Trump’s announcement, which leaves room for modifications
If any affected country retaliates, President Trump further asserts that he reserves the right to modify the tariff order. This could also occur if the Russian government or the countries that facilitate its energy exports alter their course in a manner that resolves the national emergency delineated in the order.
The order will be implemented in accordance with federal law and available appropriations, as emphasized by the final provisions. The crypto market has responded to the recent Trump tariff announcement.
The past 24 hours have seen modest gains in Bitcoin and Ethereum. At the time of writing, the price of BTC increased by 0.71%, while ETH increased by 0.37%, as per the data displayed on TradingView.
India denounces the tariffs imposed by the United States as unjust and unfair
India has expressed dissatisfaction with the recent tariffs imposed by the United States on its crude trade with Russia. According to the Indian government, its energy imports are contingent upon market conditions.
The Ministry of External Affairs (MEA) issued an official statement expressing regret that the United States has chosen to penalize India. At the same time, other nations continue to engage in comparable trade practices.
The tariffs were characterized as “unjust, unfair, and unreasonable” in the statement. India reiterated its commitment to defending its national interests by taking all necessary measures.
India is ranked second in the world in terms of Bitcoin ownership, according to a report by OKX. Analysts believe this has resulted in India pursuing an alternative approach to safeguard its national interests. Therefore, it will not be affected by the new tariffs that the United States has implemented on its products.