Under the leadership of President Donald Trump, the United States is intensifying its pressure on countries maintaining trade ties with Russia. The latest target is India, now facing an additional 25% tariff on all imports due to its ongoing energy cooperation with Moscow.

Trump signed a new executive order expanding previous sanctions on Russian oil. The new measure applies to all Indian-origin goods entering the U.S. from September 17, 2025. The White House stated the reason behind this move is India’s continued direct and indirect purchases of Russian oil, which the administration deems a threat to national security and foreign policy objectives.

Tariffs as a Tool of International Pressure

This action builds on Executive Order 14066 from 2022, which initially banned the import of Russian-origin oil. However, the new measure goes further, also targeting indirect imports — those routed through third countries — if there is reasonable evidence linking the oil back to Russia.

Trump’s order also includes exemptions, such as for goods exported before the enforcement date or products covered by other trade protections. Key officials — including the Secretaries of State, Treasury, Commerce, and Homeland Security — along with U.S. Customs and Border Protection, have broad powers to enforce the directive.

India Responds: “Unjust and Disproportionate”

India responded with sharp criticism. In a statement from its Ministry of External Affairs, the government called the U.S. tariffs "unwarranted, unfair, and disproportionate." It emphasized that India’s energy imports are based purely on market conditions, and highlighted that other nations engaging in similar trade with Russia have not been penalized.

India also warned it would take all necessary steps to defend its national interests, hinting at potential retaliatory measures. According to analysts, India is also signaling a broader effort to diversify and strengthen its economic independence.

Trump Leaves Room for Reversal

President Trump’s order includes a clause reserving the right to amend or revoke the tariffs if the affected country takes corrective action that alleviates the perceived national emergency. This also applies if Russia or intermediaries shift their energy export policies.

Crypto Markets Unshaken

While the announcement stirred concern across traditional markets, the crypto space remained calm. At the time of writing, Bitcoin and Ethereum saw slight increases — BTC rose 0.71%, and ETH climbed 0.37%, according to TradingView.

Notably, India ranks second globally in Bitcoin ownership, according to data from crypto exchange OKX. Analysts suggest this may reflect India’s effort to build alternative paths to economic resilience, including deeper adoption of digital assets and blockchain infrastructure — which may cushion the impact of new U.S. tariffs.

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