Trump: Imposes an additional 25% tariff on India imports as a penalty for Russia oil buys | investingLive
President Trump is set to impose an additional 25% tariff on imports from India. The move is aimed squarely at penalizing New Delhi for its continued purchases of Russian oil, despite U.S. pressure to curtail such trade.
The tariff also comes against the backdrop of expectations for further sanctions on Russia, as Washington seeks to tighten economic pressure and push Moscow toward ending the war in Ukraine. By singling out India, Trump intends to make it a high-profile example of the potential consequences for buying Russian oil—and potentially other sanctioned goods.
Beyond punishment, the strategy carries a clear economic objective. Trump wants to shift more goods toward the U.S. market while simultaneously boosting U.S. oil exports to India. In his view, that would both reduce India’s reliance on Russian energy and strengthen America’s trade position.
The increase by 25% brings the total potential tariff rate to approximately 50%, effective August 27
Oil prices have moved higher on the news. From a technical standpoint, however, last week’s decline brought the market back down to test its 100-day moving average (blue line on the chart above), currently at $64.96. Today’s low of $65.11 came just above that key level, and the subsequent bounce has pushed prices away from it.
The market is now trading at $65.68. For sellers to regain control, a break and sustained move below the 100-day moving average is needed, which would open the door to the next downside targets near $64.71 and then $63.61. On the topside, there is resistance near $66.97, followed by the 200-day moving average at $67.89.
The EIA crude oil inventory data will be released at the bottom of the hour with estimates:
- Crude oil -0.591M
- Gasoline -0.406M
- Distillates +0.775M