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.
This article was written by Greg Michalowski at investinglive.com.