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Key Takeaways:
- Trump’s Executive Order adds a 25% tariff on Indian goods over Russian oil trade ties.
- India condemns the move as unjustified and plans to defend its interests.
- Crypto markets show minimal impact, with BTC and ETH posting slight gains.
President Donald Trump has signed a new Executive Order implementing a 25% tariff on all Indian-origin goods entering the U.S. from September 17, 2025. The move comes in response to India’s continued direct and indirect purchases of Russian oil, which the administration views as undermining U.S. national security and foreign policy.
This action builds upon Executive Order 14066 from 2022, which banned Russian crude oil imports to the U.S. Trump’s latest directive expands the scope to penalize trade partners indirectly enabling Russia’s energy industry, with India becoming the first country explicitly targeted.
Tariff Details and Exemptions
The 25% tariff will apply as an “ad valorem” duty, calculated on the value of the imported goods, and stacks on top of existing charges. However, goods already in transit or cleared before September 17 are exempt.
The Executive Order also outlines specific exclusions, including items protected under other trade regulations and those granted domestic status under 19 CFR. Enforcement will be carried out by U.S. Customs and Border Protection, under the guidance of the Departments of State, Treasury, Commerce, and Homeland Security.
India Responds with Strong Criticism
India’s Ministry of External Affairs condemned the tariff as “unfair, unjustified, and unreasonable,” asserting that its energy imports are based solely on market needs. The government vowed to defend its national interests and criticized the U.S. for singling out India while other nations maintain similar trade with Russia.
Also Read: Is “Operation Choke Point 2.0” Over? Trump Targets Banking Bias
Despite the tensions, the Indian crypto community appears unshaken. Bitcoin and Ethereum saw modest gains, with BTC up 0.71% and ETH up 0.37% in the 24 hours following the announcement, per TradingView data.
U.S.-India Trade Friction Escalates
Trump’s latest tariff marks a significant escalation in U.S.-India trade relations, targeting a key area of India’s economic policy. While Washington frames it as a national security measure, New Delhi views it as politically motivated. Future retaliation or policy shifts remain possible, as the Executive Order allows Trump flexibility to modify or revoke the tariff.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
