U.S. President Donald Trump signed an executive order on Wednesday imposing an additional 25% tariff on most imports from India, citing New Delhi’s continued purchases of Russian oil. The surcharge, which will come into force in 21 days, is stacked on top of an existing country-specific duty of the same size, lifting the effective levy on Indian goods to 50%. The White House said India “directly or indirectly” imports Russian crude, providing revenue that sustains Moscow’s war against Ukraine. Trump warned that similar penalties could be extended to other buyers and that further action against Russia’s so-called shadow fleet is under review as a self-imposed Friday deadline for tougher energy sanctions approaches. Commodity markets reacted swiftly. West Texas Intermediate for September delivery rose 1.75% to $66.30 a barrel, while October Brent gained 1.64% to $68.75, as traders priced in the prospect of tighter global supplies and heightened geopolitical friction. New Delhi condemned the move as “unfair, unjustified and unreasonable,” asserting that its energy purchases are driven by market considerations and the need to secure reliable supplies for 1.4 billion citizens. The Ministry of External Affairs said India will take all steps necessary to protect its national interests, signalling a further deterioration in trade relations between the two countries.
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