President Donald Trump has signed an executive order imposing a 25% tariff on imports from India, citing national security concerns due to India's ongoing purchases of Russian oil.
Reasons for the Tariff
The tariff was enacted in response to India's continued purchases of Russian oil, which Trump claims bolsters Russia's 'war machine.' Trump stated, 'So we settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil.'
Impact on Trade Relations
The new tariff, set to begin on August 27, 2025, is expected to significantly affect trade relations between the U.S. and India. It is noteworthy that tariff adjustments may occur, as Trump has indicated potential increases.
Market Outlook
With the implementation of tariffs, shifts in INR/USD rates and trade fluctuations are anticipated. Industries such as manufacturing and textiles are likely to be most affected, although the direct impact on cryptocurrency remains indirect.
The introduction of these tariffs by President Trump marks a substantial shift in U.S.-India economic relations, creating uncertainty in relations and potential changes in market dynamics.
